In order to protect senior homeowners when considering a reverse mortgage FHA requires them to complete a counseling. 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 of a reverse mortgage.
The good news is that National Council on Aging announced on Monday that it had lowered the fees on reverse mortgage counseling from $125 to $90 and offers waivers for older adults facing financial problems such as bankruptcy or with an income less than $1,000 dollars a month. Until now, Florida-based debthelper.com has been the only low cost option at $89.
What does this mean more reverse mortgages?
Senior homeowners will have access to affordable counseling in order to better understand reverse mortgages. Moreover, these waivers demonstrate the affordability of reverse mortgage counseling for seniors in more dire economic states.
The fact of the matter is, many 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 government backed reverse mortgages. These waivers further prove that private companies dealing in reverse mortgages are unsustainable. 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 nowhere.
With government-backed lending, the possibilities for struggling seniors are endless, providing financial help in a time of lower cash flow. If you think a reverse mortgage is right for you, let us know at PS Financial Services via email at info@PSReverseMortgage.com or call us at (888) 845-6630.