New Formal Reverse Mortgage Counseling Requirements
Monday, 26 July 2010 11:32
After 2 years of studying, HUD has published new procedures concerning counseling for seniors with HECMs. The details of the procedures include new information that must be presented before the counseling session, what those details are, who must be there, and what the counselor can and cannot discuss.
Prior to the meeting with the individual interested in a reverse mortgage, a counselor must mail, fax, or e-mail an information packet. The packet is to include Preparing for Your Counseling Session (a document attached to the protocol), loan comparisons, the Total Annual Loan Cost, amortization schedule, and Use Your Home to Stay at Home (NCOA’s booklet). During the counseling, the Financial Interview Tool, developed by the National Council on Aging, must be used. Counselors are also required to ask 10 questions to ensure comprehension on the senior’s behalf.
This formalization of the guidelines will make the counseling process much more efficient.
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