Reverse Mortgage Couseling

What to expect to learn when you meet with a counselor:

•HECM Reverse Mortgage Terminology - The counselor will cover all the different language and definitions that you see in literature received from a reverse mortgage lender of your choice.

•HECM Roles - Learn about the FHA's and Fannie Mae and Ginnie Mae’s involvement with the reverse mortgage program.

•HECM Interest Rates – Explore different rates and how they tie into all the reverse mortgage program options available to you.

•HUD’s TALC Disclosure - The counselor will review how the disclosure that you will receive from your lender projects the total cost of the loan in the future.

•HECM Property Repairs – If your home needs repairs you can still obtain a reverse mortgage. The counselor will review the requirements, if applicable.

•Current Budget - A counselor may ask to review your current income and outgoing expenses to see what payment option may work best for you.

•Other Options - Keep in mind the counselors are not affiliated with any mortgage lender and will not recommend a lender to you. They may also review other financial options available to you to ensure you are making the best financial decision for your situation.


Reverse Mortgage Counseling Commonly Asked Questions:

•Why do I need counseling?
The U.S. Department of Housing and Urban Development requires you attend a certified counseling session for government insured reverse mortgage, or home equity conversion mortgage (HECM).

•How do I find a counselor?
We will provide you a customized counseling list for your area. Five of the agencies must be local, with at least one a reasonable driving distance from your home. The other five are national intermediaries such as AARP. The counselors can meet face-to-face or provide counseling over the telephone.

•What will the session entail?
In reverse mortgage counseling, you’ll get information and advice based on an analysis of your budget.Also you’ll discuss why you want a reverse mortgage. You'll review your current income, any debts, including an existing mortgage, your monthly expenses, medical expenses, planned home improvements, your current access to emergency cash and the possibility that you will move, either into a new home or a nursing home in the future.You’ll receive a projection of how much you can expect to receive from a reverse mortgage and you compare which payment plan would be best for you .Counseling will take about an hour or more if you have many questions.

•What do I need to do to prepare?
Request a pre counseling packet from Reverse Mortgage Store which includes a counseling list, NCOA’s ‘Use your home to stay at home’, HUD’s “Preparing for your counseling session”, Reverse Mortgage Counseling Checklist for California, CA – Important Notice to Reverse Mortgage Applicant and Calculations sheets: TALC, Amortization Schedule and Loan Comparison Printout

•What is a certificate of HECM counseling?
A certificate of HECM counseling is written evidence that you’ve received counseling.


•What if I’m acting as a legal guardian or have power of attorney?
A reverse mortgage counselor will require proof of your guardianship or power of attorney before conducting a counseling session.


Western Pacific Home Loans- Reverse Mortgages