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.Reverse Mortgage Counseling Information

What is HECM Reverse Mortgage Counseling and why is it required?

Reverse Mortgage Counseling Information

There is no one better than Colorado Reverse Mortgage to educate and give you counsel. However, in order to qualify for a HECM reverse mortgage, all borrowers are required by HUD to attend a HECM Reverse Mortgage Counseling Session. This counseling is different than what you will have already gotten from us. These counselors are not psychiatrists, life-coaches or marriage counselors. This counseling ensures that you are aware of your financial options before you formally start the reverse mortgage process. That’s it! It doesn’t take long and can be completed over the phone or in a face to face appointment. Upon completion, you will be issued a HUD “Certificate of HECM Counseling”.

Reverse Mortgage Counseling is conducted by a third party who is approved by the U.S. Department of Housing and Urban Development (HUD). Colorado Reverse Mortgage cannot issue the certificate because we are already part of the transaction and not considered a “third party”. We will provide you with a list of HUD-approved counselors for Colorado and give you information about what they discuss and why.

Why is Reverse Mortgage Counseling done by a third party?

Statistics clearly show that Senior Citizens are taken advantage of more than any other group of people. Reverse Mortgage Counseling is required and must be completed by a third party. This is to make certain that the information you have about reverse mortgages is accurate, unbiased and that you adequately understand the program.

You can reach a HUD-approved counselor through any of the following national companies. However, we will provide you with a more thorough and current list once you give us a call:

CCMS / Debt Helper (800) 920-2262
ClearPoint Financial Solutions (877) 877-1995
Credability (866) 616-3716
Greenpath (888) 860-4167
Homefree (301) 891-8423
Neighborhood Reinvestment Corporation (888) 990-4326
National Foundation for Credit Counseling (866) 698-6322
Money Management International (877) 908-2227
Springboard (800) 947-3752

At this time, there are several locations in Colorado that offer a face-to-face reverse mortgage counseling option. However, for the sake of convenience, most clients complete the reverse mortgage counseling over their home phone. If you prefer reverse mortgage counseling in a language other than English or need to communicate via teletype, most counselors are able to accommodate you. So, whether you complete the reverse mortgage counseling over the phone or face-to-face (the choice is yours), they are there as an additional resource to answer your questions.

Boulder County Personal Finance Program (720) 564-2279
City of Aurora Community Development Division (303) 739-7914
Douglas County Housing Partnership (303) 784-7857
Greenpath Financial Wellness (888) 860-4167
Housing Solutions for the Southwest (970) 259-1086
Neighbor to Neighbor (970) 488-42364
Northeast Denver Housing Center (303) 377-3334 ext. 229

You can also visit the HUD HECM Counseling search page to find the most current Colorado HECM Reverse Mortgage Counseling agencies.

What can you expect during the Reverse Mortgage Counseling process?

Typically, our clients reach out to us before they schedule their required reverse mortgage counseling appointment. This gives us the opportunity to educate and provide some real numbers for you and the counselor to reference. The reverse mortgage counseling appointment can be facilitated over the phone or in person; it generally takes about an hour. However, with the education and resources we give you prior to the counseling, you should find the counseling to be faster and more relevant to your situation. Simply choose a counselor from the lists we provide you and call them to make an appointment.

However, if you complete the reverse mortgage counseling before you reach out to us, we still review the product to not only assure you, but to assure us that the reverse mortgage is an appropriate solution to accomplish your goals.

The counselor is required to review your housing and financial options. They will inform you of the possible consequences of a reverse mortgage regarding state and federal programs (i.e. SSI and Medicaid) and how a reverse mortgage could affect your family. Having a third party explain your options and go over the details of a reverse mortgage only helps to ensure that you are educated and confident about your choices. The job of the counselor is not to direct you toward a specific solution, specific product or a specific lender, but rather they are to inform you of your options, confirm that you’ve considered alternatives and to check that you are not being manipulated or taken advantage of financially. 

The counselor’s files must contain documentation demonstrating a budgetary analysis was conducted. Specifically, their file will contain, at a minimum, documentation that demonstrates the following topics were covered during the counseling session:

  • Household budgeting
  • Property condition
  • Current Health status and medical needs
  • Household composition, such as other occupants of the property
  • Marital status, such as widowhood, remarriage, divorce

Once you’ve completed the reverse mortgage counseling appointment, a certificate will be issued and a few original certificates will be mailed to you. You should receive the original certificate anywhere from 3 days to 3 weeks. However, if you tell the counselor to email the certificate to us, we can begin the application process immediately. Once we receive the Certificate, it takes us about 10 minutes to review the loan application (typically it’s just a quick phone-call by us) and make any adjustments you request.

The ball is now rolling!