Quick Answer
Reverse mortgage counseling is a required, independent session with a HUD-approved housing counselor that you must complete before a HECM can close. It exists to protect borrowers: a neutral third party explains how the loan works, reviews costs and alternatives, and confirms you understand your obligations. Sessions take about an hour, can be done by phone or in person, and carry a modest fee that can sometimes be waived.
What Is Reverse Mortgage Counseling?
Reverse mortgage counseling is a mandatory one-on-one educational session conducted by a HUD-approved, independent housing counseling agency. It is required by federal law for all HECM (Home Equity Conversion Mortgage) applicants before a loan application can be submitted. The counselor is employed by an independent, non-profit agency — not by your lender or broker. Their job is to educate you on the full scope of reverse mortgages so you can make a truly informed decision.
Who Provides Counseling — and Who Does Not
HUD-approved counseling agencies provide reverse mortgage counseling. These are independent, non-profit organizations certified by the U.S. Department of Housing and Urban Development. Examples include NFCC member agencies, community housing organizations, and NeighborWorks affiliates. Your reverse mortgage broker or lender — including Reverse Mortgage Plus — does NOT provide HUD counseling. We are licensed mortgage brokers, not counselors. We help you understand reverse mortgages and prepare for your counseling session, but the counseling itself must come from an independent HUD-approved agency.
Why Is Counseling Required?
Congress mandated HUD counseling as part of the HECM program to give borrowers an independent, unbiased education before committing to a major financial decision. The counselor has no financial stake in whether you proceed — they earn the same fee whether you move forward or decide a reverse mortgage is not right for you. This protects borrowers from potential pressure by lenders or family members and ensures that every borrower who closes a reverse mortgage has had an independent expert review their specific situation.
How to Find a HUD-Approved Counselor
The official way to find a HUD-approved counselor is through the HUD Counselor Locator at hud.gov or by calling HUD's housing counselor referral line at 1-800-569-4287. You can filter by language (including Spanish), phone vs. in-person, and zip code. Sessions are offered by phone or video in most states, including California — you do not need to travel to a physical office. Reverse Mortgage Plus advisors will also provide a list of vetted HUD-approved agencies in your area when you contact us.
What the Counseling Session Covers
The counselor will cover: how reverse mortgages work, costs and fees, your rights as a borrower, alternatives to a reverse mortgage (HELOC, downsizing, assistance programs), the impact on your estate and heirs, your obligations (taxes, insurance, maintenance), and any specific questions you have about your situation. The session typically lasts 60–90 minutes by phone.
Counseling Fees
Counseling agencies typically charge $125–$250 for the session. By law, this fee must be reasonable and cannot be a barrier to counseling — agencies must offer fee waivers to low-income borrowers. In California, many counseling agencies serve Spanish-speaking borrowers as well. After completing the session, you receive a signed Counseling Certificate that your broker submits with your loan application.
How Reverse Mortgage Plus Helps You Prepare
Because counseling works best when borrowers come in educated, Reverse Mortgage Plus advisors meet with prospective clients before their counseling session to answer questions, explain the process, run preliminary estimates, and help you formulate the right questions to ask your counselor. This preparation — at no cost and no obligation — means your counseling session is more productive and focused on your specific needs rather than covering basics you already understand.
