MMI Offering Free Reverse Mortgage Counseling
July 10th, 2009 | by admin Published in Counseling, News, Reverse Mortgage | 6 Comments
Money Management International (MMI) announced that as of July 1st, 2009 it’s no longer charging clients for reverse mortgage counseling. According to a company statement, MMI believes it has sufficient grant funds to cover expenses until at least October 2009, at which time new HUD grant funds will become available.
MMI expects there will be large demand for HECM counseling, so it will limit capacity to about 3,500 sessions each month, but all seniors calling MMI to receive counseling by phone or in any of its branches will not be charged.
MMI is a national intermediary, so it should be listed on every counseling list given to a client. However, HUD does not permit lenders to steer to any particular agency, but having a no cost option for counseling is a great thing to have.
Money Management International (MMI) and its family of Consumer Credit Counseling Service (CCCS) agencies make up the largest nonprofit, full-service credit counseling agency in the US and provides counseling 24/7.
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July 13th, 2009 at 7:52 am (#)
“HUD does not permit lenders to steer to any particular agency, but having a no cost option for counseling is a great thing to have.”
So, HUD does not pernit lenders to steer to any particular agency. I realize that is their policy but how can we, as people that are supposed to be working for the senior citizen, not point them to the free one? I am guessing everyones customers are like mine, 70% have a hard time coming up with the counseling fee. I think it would be wrong of us NOT to guide them towards the free one.
July 13th, 2009 at 8:16 am (#)
Easy! Explain to your client that some companies will not charge them to counsel, it's up to them to do the research. This way you didnt steer, you educated.
July 14th, 2009 at 4:23 am (#)
Markjudge makes a valid point. The MMI decision on free HECM counseling would cause other counseling agencies to rethink their strategy. It is a plus for seniors.
July 14th, 2009 at 11:23 am (#)
It's easy. In the list of counseling agencies we give to our customers (and we list 10), we include the amount each agency charges for the counseling session, along with whether telephone counseling is available.
July 22nd, 2009 at 2:39 am (#)
How would any of you feel if another lender decided that they would waive origination fees for the next three months? How would you feel if counselors told clients, “there is a lender who will waive his origination fee, just go some research”? How would you like it if counselors provided prospective borrowers with a list of lenders, detailing how much you charge? So why do you think it's a great idea to do this to counselors? It's all very well to say that MMI's move may make other agencies consider their fees, but it's a bit like saying that when Wal-Mart gives something away, other businesses feel forced to do likewise. In the world of business, what MMI is doing would be considered a flagrantly anti-competitive practice, using government money to essentially shut down its competitors until after October 1. Other agencies don't have the option of doing this, because they don't receive the huge grant from HUD that MMI did. As a consequence, your clients will get crappy counseling, but, hey, it will be free — for now.
July 22nd, 2009 at 9:39 am (#)
How would any of you feel if another lender decided that they would waive origination fees for the next three months? How would you feel if counselors told clients, “there is a lender who will waive his origination fee, just go some research”? How would you like it if counselors provided prospective borrowers with a list of lenders, detailing how much you charge? So why do you think it’s a great idea to do this to counselors? It’s all very well to say that MMI’s move may make other agencies consider their fees, but it’s a bit like saying that when Wal-Mart gives something away, other businesses feel forced to do likewise. In the world of business, what MMI is doing would be considered a flagrantly anti-competitive practice, using government money to essentially shut down its competitors until after October 1. Other agencies don’t have the option of doing this, because they don’t receive the huge grant from HUD that MMI did. As a consequence, your clients will get crappy counseling, but, hey, it will be free — for now.