What to expect with reverse mortgage counseling
The counseling sessions are designed to help the prospective borrower(s) to evaluate the pros and cons of whether a reverse mortgage is right for their situation.
The counselor will explain:
- how a reverse mortgage works
- the specific aspects of the reverse mortgage product the borrower is considering, including costs, tax implications, benefits, drawbacks and any payment options
- financial or social service alternatives to a reverse mortgage
- warnings about potential reverse mortgage/insurance fraud schemes and elder abuse
Receiving a financial assessment
An integral part of the counseling session is the financial assessment, which is designed to help ensure the borrower is able to uphold their loan obligations, such as continuing to pay their property taxes and homeowners insurance.
Above all, reverse mortgage counselors are required to follow specific practices, which are designed to ensure you receive quality counseling services and are protected against fraud and abuse.
Overall, the counselor’s job is to be a neutral source of information who acts in a homeowner’s best interest, meaning they will not push you into any course of action. Their job is to make sure you completely understand how the reverse mortgage process works and explain any other options you might have.
Receiving a certificate of completion
Once the counseling is completed, the borrower will receive a certificate that lenders will require before they can even submit the borrower’s loan application for underwriting review and approval. It verifies for a lender that you have successfully completed counseling. The certificate is good for up to six months.
The goal of reverse mortgage counseling
The ultimate goal of the counseling session is to help borrowers understand their options so they can make an informed decision on whether a reverse mortgage is the right loan product for their individual circumstances, future goals, and needs.
Who is Consolidated Credit?
Consolidated Credit has been a HUD-approved housing counseling agency since 2009. We have been approved by HUD to provide reverse mortgage counseling for Home Equity Conversion Mortgages (HECM). Consolidated Credit also provides counseling for proprietary reverse mortgages, now being offered by a growing number of lenders for borrowers whose needs and property values go beyond the limits of a HECM.
Our staff is able to conduct counseling sessions in both English and Spanish. If you would like to schedule a reverse mortgage counseling session or simply want more information, feel free to call us at 1-800-435-2261 to speak with a HUD-certified counselor today.