FHA/HUD Procedures & Counseling
This informational FHA/HUD handbook was used to create the FHA/HUD Home Equity Conversion Mortgage (HECM) program in 1989. It has been modified over the years and is still used today as the guidelines that all Lenders must adhere to in their underwriting procedures. PDF of HandBook
MANDATORY REVERSE MORTGAGE COUNSELING
Please find below various options that you may take in order to receive mandatory HECM (reverse mortgage) counseling. This counseling must be done at the client’s expense as of October 1, 2008 according to the Mortgagee Letter 2008-28 issued by HUD. Unfortunately, all lenders are prohibited from helping pay or defray the cost of counseling for the prospective borrower. The cost of counseling will be approximately $125 and will be requested prior to any counseling. These funds can be paid directly to the counseling agency with a credit card. If other financial arrangements need to be made it will be done on a case by case basis.
The HECM Counseling serves as a safeguard for the consumer to insure a better working knowledge of reverse mortgages as presented by a third party (NON LENDER). The HECM counselor will explain different reverse mortgage options, alternatives and general terms involved in the reverse mortgage transaction.
HECM counselors from the below agencies are permitted to provide face-to-face and telephone counseling nationally. Please contact them to obtain HECM counseling.
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MANDATORY REVERSE MORTGAGE COUNSELING
Please find below various options that you may take in order to receive mandatory HECM (reverse mortgage) counseling. This counseling must be done at the client’s expense as of October 1, 2008 according to the Mortgagee Letter 2008-28 issued by HUD. Unfortunately, all lenders are prohibited from helping pay or defray the cost of counseling for the prospective borrower. The cost of counseling will be approximately $125 and will be requested prior to any counseling. These funds can be paid directly to the counseling agency with a credit card. If other financial arrangements need to be made it will be done on a case by case basis.
The HECM Counseling serves as a safeguard for the consumer to insure a better working knowledge of reverse mortgages as presented by a third party (NON LENDER). The HECM counselor will explain different reverse mortgage options, alternatives and general terms involved in the reverse mortgage transaction.
HECM counselors from the below agencies are permitted to provide face-to-face and telephone counseling nationally. Please contact them to obtain HECM counseling.
- National Foundation for Credit Counseling (NFCC) - 1-866-698-6322
- Money Management International (MMI) - 1-877-908-2227
- American Association of Retired Persons (AARP) - 1-800-209-8085
- If you would like to find a counselor in your area through HUD directly you may call HUD @ 1-800-569-4287
- If you want to locate a counselor in your general vicinity online please go to the HUD locator www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
Please Find a sample certificate :
Download now
