RMCA, Reverse Mortgage Counseling Association

Why Do I Need Counseling

The US Department of Housing and Urban Development (HUD)requires that all borrowers taking out a

reverse mortgage participate in a counseling session with a a HUD approved Reverse Mortgage Counselor.

These counselors work for non profit organizations and must have successfully completed certification examination

with HUD.

The counseling session covers a lot of information about the reverse mortgage but generally has the following objectives:

♦ To educate the client around many different aspects of the reverse mortgage process

♦ To ensure that the homeowner understand the costs, benefits, features and options available under the reverse mortgage program

♦ Provides an opportunity for the homeowner to ask questions about the reverse mortgage, safe in the knowledge that the counselor has no financial stake in whether they decide to take out a reverse mortgage.

♦ Help the client review their personal situation to asses the likely benefits and drawbacks for taking out reverse mortgage.

♦ To identify other resources and programs that may help the homeowner and may supplement or sometimes replace the need for a reverse mortgage.

Although loan counseling is mandatory, it is also an opportunity to learn more about reverse mortgages and gain valuable insight into to what extant this loan will meet their needs. Taking out a reverse mortgage is one of the larger financial decisions that homeowners will make and the counseling session can help homeowners sort through their options and be confident about making a fully informed decision.