Requesting Reverse Mortgage Counseling
Homeowners aged 62 and over can get reverse mortgage counseling for federally-insured Home Equity Conversion Mortgages (HECMs) through a national network of HECM counselors approved by the U. S. Department of Housing and Urban Development (HUD).

The AARP Foundation's Reverse Mortgage Education project strongly encourages consumers to read AARP's website pages or consumer guide on reverse mortgages before requesting counseling. The website pages at www.aarp.org/revmort are an online version of the consumer guide. 

To make sure you see all the pages on the AARP site beginning at www.aarp.org/revmort, click on each of the menu items under "Reverse Mortgages" on the left side of the page: Basics, Federally-Insured Loans, Other Choices, and Key Decisions. And then click on each of the pages listed under each of these headings.  

Consumers can order a free single copy of the guide or download it from www.aarp.org/revmort-basics/Articles/a2003-04-07-homemademoney.html. They can also order by phone: call 1-800-209-8085 and ask for "Home Made Money" (stock # D15601).

Counseling Required
The counseling is required by HUD before a homeowner can obtain a federally-insured reverse mortgage. It generally takes at least one hour and - when provided by telephone - requires two or more calls. If you are seriously considering applying for a reverse mortgage and think you might be ready for a formal counseling session, please use the checklist below to help you decide.

Counseling agencies may charge a fee for HECM counseling, but they must tell you about it before the counseling occurs, and the fee amount must be based on your ability to pay. Agencies cannot turn you away because of your inability to pay, and they cannot refuse to counsel you if you fail to pay. The maximum allowable fee in 2008 is $125 or the actual cost of providing the counseling, whichever is less. If your counseling agency charges a fee, you can have it paid out of your loan proceeds just like other HECM fees, or you can pay it directly to the counseling agency. HUD also allows lenders to pay for HECM counseling.

HUD Network Counseling
The counselors in HUD's National HECM Counseling Network are employed by local HUD-approved counseling agencies. These counselors achieved the highest scores on a national HECM counselor exam approved by HUD, and have been authorized by HUD to provide HECM counseling by telephone on a nationwide basis. They use loan software that meets AARP's model specifications for analyzing and comparing reverse mortgages. They provide in-person counseling in their local areas, and counseling by telephone in other areas nationwide.  

All counseling sessions are confidential. HUD-approved HECM counseling agencies are required by HUD to "hold in strict confidence all client information regardless of the source" (HUD Handbook 7610.1). Counseling can be requested by a homeowner or an owner's authorized legal representative. Authorized legal representatives can be a guardian, conservator, or a person holding a durable power of attorney who has been authorized to act in this matter by the owner. 

After they have read the website pages or consumer guide, homeowners may request counseling from a HUD National HECM Network Counselor in one of two ways:

• call 1-800-209-8085 (tollfree) Monday through Friday from 7 AM to 12 midnight Eastern time, and ask for reverse mortgage counseling. 

• call a HUD National HECM Network Counselor directly; Click here for more information.

Neither AARP nor the AARP Foundation endorse any reverse mortgage product or lender. But they want consumers to have the independent information they need to make informed choices about these loans and other, less costly alternatives.

Are You Ready to Request Reverse Mortgage Counseling?