Free Reverse Mortgage Counseling

The Money Management International (MMI) along with its family Consumer Credit Counseling Service (CCCS) agencies make up the largest nonprofit, full service credit counseling agency in the United States and provides counseling 24 hours a day seven days a week, announced on July 1, 2009 that MMI will no longer charge mature borrowers for reverse mortgage counseling. The reverse mortgage program also known as the Home Equity Conversion Mortgage (HECM) is for mature borrowers over the age of 62 who want to maintain their quality of life by using the equity in their homes for supplemental income.

According to the U.S. Department of Housing and Urban Development (HUD) mature borrowers seeking to participate in the reverse mortgage program must first visit with a HUD approved HECM counselor. A list of HUD approved counselors is required to be issued to all mature borrowers who contact mortgage lenders. While mortgage lenders can not solicit or recommend counselors for mature borrowers seeking counseling the no cost option for counseling changes made by MMI is a plus for borrowers.

MMI no cost counseling will be limited to a capacity of about 3,500 sessions each month because of the expected large demand for reverse mortgage counseling. All mature borrowers who call MMI will receive counseling by phone or in any of its branches will not be charged either. The free sessions are due to the sufficient grant funds MMI believes they currently have to cover expenses until at least October 2009. After that time, new grant funds will become available through HUD.

The reverse mortgage program generally requires mature borrowers to pay only two out of pocket fees which are closing costs and the counseling session. MMI free counseling sessions has a potential to help a large number of borrowers and make reverse mortgage assistance more accessible. The Federal Housing Administration (FHA) and HUD changed the counseling requirements for borrowers to ensure borrowers understood the reverse mortgage program guidelines:

-A mandatory counseling session prior to applying for a reverse mortgage, which must be attended by a HUD approved reverse mortgage counselor and not recommended by a mortgage company.

-While there is no age limit on the age of the borrower, the age of the youngest borrower must be at least 62 years of age.

-The borrowers must own their current home with no mortgage or a low enough mortgage balance.

-The reverse mortgage loan must be paid back. While borrowers can receive monthly payments, a lump sum, or a line of credit they are expected to pay the money back if they move out of their home or the become deceased.

Borrowers have many options in the reverse mortgage program which can maintain their independence but they first must go through the required HUD counseling session. While MMI cannot be recommended borrowers are encouraged to gather more information on their free counseling services.

A thirteen-year veteran of the mortgage industry, Robert Griffin specializes in reverse mortgages and has helped over 3000 Americans find financial security with a reverse mortgage. The owner of Griffin Financial Mortgage LLC, based in Fort Worth, Texas, his memberships include the National Association of Mortgage Brokers (NAMB), the Mortgage Bankers Association (MBA), the National Reverse Mortgage Lenders Association (NMRLA) and the Better Business Bureau (BBB). Robert Griffin is also co-author of "62 Senior Moments." If you would like more information, please call (866) 683-3690 or visit our Reverse Mortgage Calculator.