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Welcome! This webpage is for senior citizens 62 years and older who are interested in reverse mortgages.
Home Equity Conversion Mortgages (HECMs) are federally-insured reverse mortgages. Homeowners aged 62 and over interested in the Home Equity Conversion Mortgage (HECM) program are required to get counseling from an independent third party.
Our non-profit partner, Hancock Community Development Corporation, doing business as hecmcounselor.ORG, provides HECM or reverse mortgage counseling to senior citizens.
They provide counseling in a very friendly and informative manner. As we like to say, “They have no nickel in your quarter!” Their job is not to tell you what to do, their job is to make sure you have the information you need so that you understand what you’re doing.
If you need counseling, please call them at 1-877-800-8570. Or visit their website, www.hecmcounselor.org. The HUD recommended fee for the counseling is $125.00. They often can provide counseling the very same day!
If you are nervous about the process, don’t be! Counseling is required because reverse mortgages can sometimes be difficult to understand. Once you understand reverse mortgages (trust us, it’s not that hard!), you surely will be much more comfortable with your decisions.
Again, welcome and you are in good hands with hecmcounselor.ORG
Here are answers to some common questions about reverse mortgage/HECM counseling.
1. Why do I need counseling?
The U.S. Department of Housing and Urban Development (HUD) requires a certified counseling session for a federally-insured reverse mortgage, also known as a home equity conversion mortgage (HECM).
2. Does everyone need counseling?
Reverse mortgage borrowers choosing the federally-insured reverse mortgage are required to get counseling before application.
Some lenders may first suggest that you speak with their own consultants to learn about reverse mortgage options, which is fine. But official counseling from an independent HUD-approved counselor (like hecmcounselor.org) is still required.
3. What will the counseling session entail?
In reverse mortgage counseling, you’ll get information on the pros and cons of the reverse mortgage. You’ll also discuss your other options.
You’ll receive a projection of how much you can expect to receive from a reverse mortgage. And you’ll compare the payout terms available to you.
It’ll take about an hour. More if you have several questions.
4. What do I need to bring to my counseling session?
Before you do your counseling session, you may want to make some notes about how much money you’re making and how much your expenses are. You don’t need to provide your actual pay stubs or bills or any other documentation.
You’ll also want to know if there are any liens on your house.
If a lender has given you a projection of your reverse mortgage payout, you may want to have it available as well, although it’s not required.
5. What is a certificate of HECM counseling?
A certificate of HECM counseling is written proof that you’ve received counseling.
The certificate cannot be provided until your counseling is completed. In order to begin processing of your application, your lender will need a faxed or emailed copy of the certificate signed by a HUD-approved reverse mortgage counselor.
6. What if I’m acting as a legal guardian or have power of attorney?
A legal guardian/power of attorney is required to be counseled.
Again, if you need more information or counseling, call 1-877-800-8570 or visit www.hecmcounselor.org.
