Reverse Mortgage Counseling
Today's video is about reverse mortgage counseling. I just wanted to speak to you about the reverse mortgage counseling, which is a requirement to be eligible to do the reverse mortgage program. Reverse mortgage counseling is required to ensure that homeowners understand the financial responsibilities involved as well as the potential risks. HECM Origination Counseling assists seniors through the process of determining if they are qualified for and obtaining a loan. Counselors cover a number of required topics including eligibility, loan amounts and loan limits, and future repayments. It's one of the requirements for the process of the loan. I just wanted to clarify for anybody who's interested in getting a reverse mortgage, when you're doing the counseling, it is not considered a TEST, IT IS NOT AN EXAM! The counseling takes about 20-40 minutes and it can be done over the phone, online or in person. Your reverse mortgage counselor will basically be going over the same information your reverse mortgage loan officer / specialist explained to you but with more details. Once the counseling is complete, your counselor will send you a certificate of completion through the mail. I wanted to make this video so that all my clients can be aware that they shouldn't be worried that they're gonna ask them some questions and that they need to know the correct answer. The counseling is not a test. All it is it's more information that the reverse mortgage counselor is going to provide to the client.
HUD requires homeowners to complete reverse mortgage counseling before they even apply for a reverse mortgage. This stipulation exists to ensure that homeowners fully understand how reverse mortgages work and the financial responsibilities that they convey. It’s also important to note that the homeowner, not the reverse mortgage lender or the federal government, is responsible for scheduling a session with an approved counselor.
Completing reverse mortgage counseling by itself doesn’t guarantee that you’ll be able to get an HECM. If your counselor believes that you don’t fully understand the financial implications of a reverse mortgage or your obligations, they can withhold your counseling certificate. You may need to attend additional counseling sessions before you can obtain the certificate. An application for an HECM can’t be completed without this certificate. And even when you have one, a lender may still deny your application for an HECM if you lack financial resources to cover basic homeownership costs or you’re behind on federal debt.
For any more questions, feel free to contact us at 562-881-9811 and ask to speak to Miguel Vazquez.
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