Before taking out a home equity conversion mortgage (or HECM) loan, you’re required by law to take part in a third-party counseling session with a government-approved housing counselor. Knowing what to expect from HECM counseling is meant to help you and other potential borrowers be fully versed in all the options available, be educated on the HECM itself and provide you with support and guidance throughout it all. If you’ve made it to this step in your HECM process, here’s what to expect from a counseling session. Note that the role of a government approved counselor and the key points counseling sessions must cover is set by the Department of Housing and Urban Development (HUD).
What to Expect From a HECM Counselor
- Education: Explanations of reverse mortgage features. Discussions of the appropriateness of a reverse mortgage based on your individual situation, and other financial options that might meet your needs.
- Guidance and resources designed to enable you to make an informed decision
- Ongoing support throughout the HECM process.
Note that the counselor will not tell a client whether or not they should proceed with a reverse mortgage, or specify a reverse mortgage product to use.
Counseling Session Topics
HUD requires that counselors cover the following topics in every reverse mortgage counseling session:
- Your individual needs and circumstances
- Features of a reverse mortgage
- Your responsibilities under a reverse mortgage
- Costs to obtain a reverse mortgage
- Financial/tax implications of a reverse mortgage
- Financial or social service alternatives to a reverse mortgage
- Warnings about potential reverse mortgage/insurance fraud schemes and elder abuse
Other Things To Know Before You Go
- HUD encourages face-to-face counseling, and certain states require in-person counseling for all borrowers considering reverse mortgages. For clients that can’t meet in-person, it may be possible to engage in telephone counseling.
- You can search for a government-approved third party counselor near you on HUD’s website here.
- Depending on your financial circumstances, there may be fees for your counseling session. Our short, three-minute video explains more.
To find out more about how a Reverse Mortgage can work for you call Melinda Hipp , CRMP with Open Mortgage at 210-493-7332, email at
email@example.com or visit texasreverse.net to learn more.
More about Melinda Hipp and Open Mortgage -
Melinda Hipp is Branch Manager with Open Mortgage|San Antonio and specializes in working with senior homeowners 62 and over who would like to access the equity in their home through a Reverse Mortgage. She has handled hundreds of satisfied Reverse Mortgage clients over the past ten years with many raving fans. She and her team are dedicated to giving you boutique service, a quick closing and personalized customer service.
Melinda regularly provides training to local real estate professionals and holds the designation of MBA, CRMP (Certified Reverse Mortgage Professional) and CMC (Certified Mortgage Coach.) Melinda is also an active member of NRMLA (National Reverse Mortgage Lender’s Association). An avid golfer, Melinda was a charter member of the San Antonio Chapter of the Executive Women’s Golf Association. She is currently a member of the National Reverse Mortgage Lender’s Association, Women’s Council of Realtors, San Antonio Board of Realtors, CRS and a board member of Golf San Antonio.
Melinda Hipp, CRMP | NMLS #219085
1870 W. Bitters Rd., Ste. 202
San Antonio, TX 78248
Toll Free: 844-265-5513
Things to know about Reverse Mortgages:
- At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds
- Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees
- The loan balance grows over time and interest is charged on the outstanding balance
- The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home
- Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment