What Is HECM Reverse Mortgage Counseling and Is It Required?

Why HECM Counseling Is Required#

Home Equity Conversion Mortgage rules and regulations include a requirement that the reverse mortgage borrower receive third-party counseling. Reverse mortgage counseling is required for Home Equity Conversion Mortgages, known as HECMs. Reverse mortgage borrowers are required to take part in counseling before applying for the loan.

What a HECM Is#

A Home Equity Conversion Mortgage, or HECM, is a reverse mortgage created and regulated by the U.S. Department of Housing and Urban Development. It is issued by a mortgage lender but insured by the Federal Housing Administration.

What the Counseling Session Covers#

Cambridge Credit Counseling’s HUD-approved reverse mortgage counselors provide unbiased education to seniors interested in a reverse mortgage. This includes explaining how the loan works, such as the rule that under the HECM program, borrowers can live in a nursing home or other type of home for 12 months before their reverse mortgage loan becomes due.

Cambridge Credit Counseling’s HUD and Massachusetts Approval#

Cambridge Credit Counseling Corp is approved by the U.S. Department of Housing and Urban Development and the Massachusetts Executive Office of Elder Affairs as a reverse mortgage counseling agency. Cambridge Credit Counseling Corp is also approved to provide reverse mortgage counseling by phone on a national level, so homeowners across the country can use this service.

Counselor Credentials at Cambridge Credit Counseling#

Counselors at Cambridge Credit Counseling hold certifications that include NFCC Certified Credit Counselor, HUD-Certified Housing Counselor, HUD-Approved Reverse Mortgage Counselor, and PFE Certified Debt Management Professional.

What to Do Next#

If you are considering a reverse mortgage and need to complete the required counseling, you can reach Cambridge Credit Counseling’s reverse mortgage counselors at (888) 764-7460.