Affordable HECM Reverse Mortgage Counseling
For the protection of older homeowners, considering a reverse mortgage, the Federal Holusing Administration requires them to attend mandatory reverse mortgage counseling and come back with a signed document that confirms they attended their counseling session. The Department of Housing and Urban Development approved an allocation of $40 million for reverse mortgage counseling, in June, with the hope of helping homeowners better understand the rules and regulations involved with a reverse mortgage.
Until now, however, Florida-based debthelper.com, has been the only low cost reverse mortgage counseling option at $89. The good news is that National Council on Aging haslowered the fees on reverse mortgage counseling from $125 to $90 through September 30 and now offers waivers for older adults facing financial problems such as bankruptcy or with an income less than $1,000 dollars a month.
What does this mean for reverse mortgage counseling?
Senior homeowners will now have access to affordable reverse mortgage counseling (and its many benefits) in order to fully understand the reverse mortgage application process. In addition, these waivers will provide a much needed financial break to homeowners n dire economic states.
The fact of the matter is, a percentage of seniors who apply for a reverse mortgage are impoverished–or on their way there–and waivers on counseling helps them follow through with their application without having to be buried under massive charges.
In a previous post, I talked about reverse mortgage competition and how it will be unhealthy for consumers as well as for brokers who work with FHA-insured reverse mortgages. These waivers further prove that private companies dealing in reverse mortgages are unsuitable. If you are a private company, all your funds come from within, making you more cautious and less likely to spend money providing services–like counseling–that might lead to nowhere.
With government-backed lending, the possibilities for struggling seniors are endless, providing financial help in a time of lowered, or low, cash flow. If you think a reverse mortgage is right for you, let us know at PS Financial Services by phone at (888) 845-6630 or via email at info@PSReverseMortgage.com.
Click here for more information about the elimination of the reverse mortgage program as we know it: