Reverse mortgages can provide eligible homeowners with income in retirement. Homeowners who seek out a 澳洲💧幸运5官方开奖结果体彩网:home ⛎equity conversion mortgage (HECM) are required to complete approved counseling first. The United States 澳洲幸运5官方开奖结果体彩网:Department of 🎶Ho🌠using and Urban Development (HUD) establishes the guidelines that must be met for an individual or organization to of🀅fer HECM counseling.

What Does a Reverse Mortgage Counselor Do?

An HECM is a financial arrangement in which a homeowner is able to turn their 澳洲幸运5官方开奖结果体彩网:home equity into an income stream. Reverse mortgage companies provide funding to the homeowner—in a lump s♉um, installments, a line of cre♈dit, or a combination of two options. This money does not have to be repaid as long as the homeowner is using the home as their 澳洲幸运5官方开奖结果体彩网:primary residence. Once they sell the home, move out, or pass away, the reverse mortgage balance becomes payable.

Before a homeowner can get an HECM, however, they are expected to meet some requirements. One is the completion of reverse mortgage ꦿcounseling with a HUD-approved entity or agency. It’s the reverse mortgage counselor’s job to ensure that homeowners fully understand 💞what a reverse mortgage involves, including:

• How a 澳洲幸运5官方开奖结果体彩网:reverse mortgage works
• Reverse mortgage fees
• Financial and tax implications of using a reverse mortgage to withdraw equity
• 澳洲幸运5官方开奖结果体彩网:Alteℱrnatives to reverse mortgage loans
• Financial responsibilities of the homeowner
• How to avoid 澳洲幸运5官方开奖结果体彩网:reverse mortgage scams/fraud

Upon successful completion of the counseling, a homeowner receives a cer⛎tificate, which is required to apply for an HECM. But if a reverse mortgage counselor believes that the homeowner doesn’t understand what’s involved with an HECM, they can withhold the counseling certificate. If the counselor withholds the certificate, then the homeownꦓer may need to undergo additional counseling.

Reverse Mortgage Counselor Requirements

Only counselors who are added to the HUD roster can offer HECM c🍷ounseling services. To be added to thi🐭s roster, counselors must meet these requirements:

• Be employed by a HUD-approved housing counseling agency, an affiliate of a HUD-approved intermediary, or a state housing finance agency
• Successfully pass the HECM exam, which can be administered by HUD or a HUD-approved party
• Receive HECM education and training in the two-year period prior to being added to the HUD roster
• Have access to technology that allows HUD to track the results of counseling offered to HECM borrowers
• Complete continuing HECM education and training every two years
• Retake the HECM exam every three years

Additionally, approved counselors cannot be listed on the General Services Administration’s Excluded Parties List System (EPLS), HUD’s Limited Denial of Participation (LDP) List, or HUD’s Credit Alert Interactive Response System (CAIVRS).

How to Become a Reverse Mortgage Counselor

To be added to HUD’s roster, counselors must complete the HUD Certified Housing Counselor Application. This application is available online and can be downloaded, printed, and scanned into PDF format. This form must be submitted to HUD, along with an HECM training certificate.

Here’s th♊e information t🥃hat you’ll need to include on this form:

• Name
• Date of birth
• Social Security number
• Gender
• Ethnicity
• Address
• Phone number
• Email
• HECM training information, including course name and completion date

You also have to certify and agree to certain st﷽atements included in the application regarding the accuracy of your information.

The HECM counselor exam must be completed prior to uploading these documents. HUD advises waiting a week or more before applying for a spot on the HECM counselor roster after taking the HECM exam. This allows enough time for exam results to be updated.

HUD will review the completed application and supporting documents, then either approve or deny the application. Counselors are notified by email whether their application has been approved. If it has been denied, they’ll be given a reason for the denial. Once a counselor is approved, they can be placed on the HECM counselor roster after their employment is verified.

You’ll need to complete at least one HECM training course every two years and retake the HECM exam every three years to maintain active status on the roster. Failure to meet these requirements could result in removal from HUD’s roster. You also can be removed for failing to comply with HUD requirements and standards.

The Bottom Line

Becoming a reverse mortgage counselor is something you might be interested in if you would like to offer your services to older homeowners who might be considering a reverse mortgage. Before you can become a reverse mortgage counselor, you must be employed by a HUD-approved housing counseling agency, an affiliate of a HUD-approved intermediary, or a state housing finance agency. In addition, you have to meet all of HUD’s requirements, including testing and education. HUD provides sample questions to help you prepare for the HECM exam along with other resources to guide you through the process of becoming an approved counselor.