The Ins and Outs of Reverse Mortgage Counseling
One of the most important protections built into the Reverse Mortgage programs is mandatory counseling for all prospective borrowers, those exercising Power of Attorney, guardians, and non-borrowing spouses, by an independent third-party counselor approved by the U.S. Department of Housing and Development (HUD) before a loan can be processed.
Other then explaining Reverse Mortgages, helping you to decide if a Reverse Mortgage is right for you, which loan program and payment plan may work best for you, and taking your application, we cannot proceed with your application until you have the original Counseling Certificate inhand.
Counseling is product specific and cannot be transfered. Thus, it is preferrable that you meet first with a Reverse Mortgage Specialist to help determine which loan program best fits your needs and goals. If you attended counseling for a difference loan program then you choose, you will have to attend again.
All counseling is free to prospective borrowers.
By law the counselor is to review with you:
- Any other options to a Reverse Mortgage;
- Other home equity conversation programs such as property tax deferral prgrams;
- The finaincial implications of a Reverse Mortgage;
- Any consequences affecting eligibility under any state of federal programs and any impact on the estate.
Your Residential Mortgage Specialist will give you a list of HUD approved conselors during your application meeting. You should schedule an appointment with a counselor as soon as you can. Counseling does not commit you to taking a Reverse Mortgage and it can take several weeks for you to get an appointment with a counselor.
HUD has approved several hundred non-profit organizations nationawide to provide counseling. There are counselors that provide mostly face-to-face counseling, and there are indivduals who are part of HUD's nationwide telephone counseling network.
Either type of counselor can advise a prospective borrower in-preson. Except for special cirumstances, only counselors who are part of the telephone counseling network can conduit phone counseling.
Mortgage Trust Group, Inc.
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