Quick Answer
HUD-approved counseling agencies are independent, federally certified educators — not lenders or brokers — whose only role is to make sure you understand a reverse mortgage before you commit. You can find one through HUD's official list (hud.gov) or your lender, complete the session by phone or in person in about an hour, and receive a certificate that's required before the loan can proceed.
What Is a HUD-Approved Housing Counseling Agency?
A HUD-approved housing counseling agency is a non-profit organization certified by the U.S. Department of Housing and Urban Development to provide independent housing counseling services. These agencies are approved and monitored by HUD for quality and compliance. They are NOT lenders, NOT brokers, and NOT affiliated with any reverse mortgage company. Their counselors are trained specifically to help borrowers understand complex mortgage products, including reverse mortgages.
The Critical Distinction: Counselor vs. Broker
This distinction is fundamental to the reverse mortgage process. A HUD-approved counselor works for an independent non-profit agency, is paid a flat counseling fee regardless of whether you proceed, provides unbiased education about all your options, and has no financial stake in your decision. A reverse mortgage broker — like Reverse Mortgage Plus — is a licensed mortgage professional who helps you apply for and close a reverse mortgage, earns compensation at loan closing, and advocates for the right loan product for your situation. Both play important but entirely different roles. Reverse Mortgage Plus does not provide HUD counseling.
How to Find a HUD-Approved Counselor in California
Use the official HUD housing counselor search at hud.gov/findacounselor or call 1-800-569-4287 (HUD's national hotline). When searching, filter for: HECM (reverse mortgage) counseling, your zip code or county, and Spanish language if needed. In California, many agencies offer phone sessions, so location is rarely a barrier. Some well-known national agencies with California coverage include NFCC-member credit counseling organizations, NeighborWorks America affiliates, and Money Management International. Reverse Mortgage Plus advisors can also provide a referral list of agencies we have worked with.
What to Bring to Your Counseling Session
To make the most of your session, gather in advance: your most recent mortgage statement (showing current balance and lender), your property tax bills from the past year, your homeowners insurance declarations page, a recent estimate of your home's value (a Zillow estimate or appraisal is fine), a basic summary of your monthly income (Social Security, pension, other), and any specific questions about your situation you want answered. You do not need to bring bank statements, tax returns, or W-2s — those are for the loan application, not counseling.
Phone vs. In-Person Counseling
Most California borrowers complete counseling by phone, which is equally valid and often faster to schedule. Phone sessions are conducted at a time you choose, from home, with no travel required. In-person sessions are available in some counties if you prefer face-to-face interaction. Both formats produce the same counseling certificate accepted by all HECM lenders. During COVID, phone counseling became the standard and remains widely preferred.
Counseling Fees and Fee Waivers
Counseling agencies typically charge $125–$250 for a session. By federal regulation, no borrower may be denied counseling due to inability to pay — agencies must offer fee waivers or reduced fees to low-income borrowers. Some non-profit agencies offer free counseling to eligible seniors. The fee is paid directly to the counseling agency, not to your lender or broker. It cannot be rolled into the loan until after the loan closes (a lender who collects this fee upfront as part of the loan application process may not be complying with HUD guidelines).
The Counseling Certificate
After completing your session, the counseling agency issues a signed Counseling Certificate. This document certifies that you completed the required education and confirms the date of the session. It is valid for 180 days from the date of issue. Your reverse mortgage broker or lender needs this certificate before submitting your loan application to underwriting. If 180 days pass without closing, you may need to repeat counseling.
