Below are some frequently asked questions and answers about reverse mortgage counseling. In addition to these FAQ’s, we have questions and answers focusing on other reverse mortgage topics:

Reverse Mortgage Basics

Reverse Mortgages and Taxes

Reverse Mortgage Rates and Fees

Questions From Visitors

If you have questions about reverse mortgages not included here, you can use the form at the bottom to submit it! We’ll do our best to get you a prompt and accurate reply.

1. What is the purpose of the required counseling during the reverse mortgage process?
2. Who must receive counseling?
3. How do I find a reverse mortgage counselor?
4. What qualifications should I look for in a reverse mortgage counselor?
5. Can I meet the requirement for reverse mortgage counseling by speaking to a reverse mortgage counselor on the phone?
6. Is there a cost for reverse mortgage counseling?
7. My mother had a stroke and later took out a reverse mortgage. Her mortgage payment was only $400 at the time.
   Can I call off the loan based on my mothers dimenished capacity. The reverse mortgage counseling was done with a person with dimenished capacity.
   The family did not know of the loan and the Mortgage company went ahead with it leaving my two disabled brothers without a home. The family can ill afford to pay off loan….what is my recourse being the eldest in the family without a will or power of attorney….
8. My husband is 69 years old but I am only 56 how will this effect a reverse mortgage ?

Reverse Mortgage Counseling Questions and Answers

1. What is the purpose of the required counseling during the reverse mortgage process?

   The purpose of counseling is to assure that borrowers fully understand the complex details of reverse mortgages, the consequences of taking one out, and the other options that might be available to them. This is a federally required feature of the reverse mortgage process and is designed for your protection. The counselor, who is from an independent government-approved housing counseling agency, explains in detail the pro’s and con’s of all your reverse mortgage alternatives. He or she will discuss a reverse mortgage’s costs and financial implications, should tell you about any government or nonprofit programs for which you may qualify, and advise you on any proprietary reverse mortgages that may be available in your area. At the end of the counseling session you will receive a Certificate of Borrower Counseling which you will need to present to the lender.

2. Who must receive counseling?

   Every owner shown on the title to the property is required to receive counseling. Generally, this will be the husband and wife owners of the home. In power of attorney (POA) situations, it is generally necessary for both the homeowner and the person designated POA to attend counseling. Other family members or advisors may also attend the counseling session at the homeowners invitation.

3. How do I find a reverse mortgage counselor?

   The easiest way to find a counselor is on the internet. You can find a state-by-state directory of counselors using this link. You can also call the US Department of Housing and U&rban Development (HUD) at 800-569-4287 for information on counselors in your area. Finally, you can contact a reverse mortgage lender in your area and ask them about recommended counselors. They can give you a list of five counselors but cannot “steer” you to a particular counselor.

4. What qualifications should I look for in a reverse mortgage counselor?

   You should always look for a counselor who is HUD approved. HUD funds housing counseling agencies throughout the country who can give you advice on reverse mortgages. You can also look for a counselor who is certified through AARP. These counselors, in addition to being HUD-approved, have scored very highly on a specialized reverse mortgage exam administered by AARP. Do not hesitate to ask the counseling agency you call about the qualifications of their staff.

5. Can I meet the requirement for reverse mortgage counseling by speaking to a reverse mortgage counselor on the phone?

   Counseling may be done over the phone, but it is highly recommended that it be done in a face-to-face meeting. Telephone counseling is intended for situations where it is not possible to meet in person due to travel distance or health concerns. Reverse mortgages are complex and counseling should never be taken lightly. Meeting face-to-face with a counselor provides added assurance that you fully understand the options and risks. Also, “phone counseling” has been at the core of some unfortunate fraud cases involving reverse mortgages.

6. Is there a cost for reverse mortgage counseling?

   Generally, counseling is available free of charge. Some counselors may have a nominal fee (under $100) to help defray costs. Be wary of anyone who offers reverse mortgage counseling services for a significant fee or for a percentage of the loan proceeds.

7. My mother had a stroke and later took out a reverse mortgage. Her mortgage payment was only $400 at the time.
   Can I call off the loan based on my mothers dimenished capacity. The reverse mortgage counseling was done with a person with dimenished capacity.
   The family did not know of the loan and the Mortgage company went ahead with it leaving my two disabled brothers without a home. The family can ill afford to pay off loan….what is my recourse being the eldest in the family without a will or power of attorney….

   That is a concern and should be taken up with the lender but you haven’t provided all the details. Part of the counseling is to ensure that the borrower is not of diminished capacity along with making sure that no one is being coerced and that the borrower understands the reverse mortgage requirements along with other options such as downsizing or getting state assistance if available. Is your mother still alive and living in the home? Assuming your brothers are not 62 or older. Even though the mortgage payment was $400 at the time, that doesn’t sound like a situation that would cause a reverse mortgage to reach a point that no other equity is left so we would need some more details into this and can help you more.

8. My husband is 69 years old but I am only 56 how will this effect a reverse mortgage ?

   Both persons on title will have be at least 62 years old. Some circumstances have allowed for a younger person to come off title if older person has life insurance policy that could pay off reverse mortgage balance to allow younger person to remain in the home. Consult an elder law attorney for that information but it is not a normal procedure.