On July 1, 2009 Money Management International a subsidiary company of Consumer Credit Counseling Service agencies, the largest nonprofit full service credit counseling agency announced that it would offer mature borrowers, over the age of 62 free reverse mortgage counseling.
What does that mean to you? Well as an interest borrower who is over the age of 62 you are now able to receive the mandatory counseling session for reverse mortgage also known as Home Equity Conversion Mortgage (HECM) free! According to MMI they believe that they have enough grant money from the U.S. Department of Housing and Urban Development to ensure free reverse mortgage counseling sessions for people like you.
Reverse mortgage is the program created by the Federal Housing Administration and HUD to assist mature borrowers who desire to remain in their own homes and maintain their quality of life. FHA and HUD have worked together for many years updating the program to ensure that your best interest is always their priority. The pair recently changed the requirements for reverse mortgage participants when they required that borrowers search and locate their own HUD approved reverse mortgage counselor. This move came because many borrowers were being referred by the mortgage company to a preferred counselor who may not have been current on HECM policies. Borrowers interested in the reverse mortgage program had to pay out of pocket expenses of the counseling session and some of the closing costs, which many borrowers expressed the costs were absorbent.
If you are unable to locate a HUD approved counselor on your own your mortgage lender must provide you with a list of HUD approved counselors. While MMI is offering such a wonderful free service to mature borrowers, mortgage lenders are not able to solicit them as a preferred counseling service.
MMI will have 3,500 free sessions per month which include telephone sessions for borrowers until October 2009. They expect a heavy turnout of borrowers seeking counseling in order to use the reverse mortgage program. These free could potentially end in October 2009 but MMI plans on receiving additional HUD grants at that time.
There are several stipulations to the reverse mortgage program which you should be aware of:
Free counseling sessions are a way to reduce the out of pocket expenses you will have when you participate in the reverse mortgage program therefore contacting your mortgage lender to find a MMI location is the first step in maintaining your independence.