HUD Implements HECM Counseling Roster and Testing Standards

image In an effort to strengthen reverse mortgage counseling, the US Department of Housing and Urban Development published Mortgagee Letter 2009-47 to implement the HECM Counselor Roster and testing standards used to qualify counselors.

According to ML 09-47, HECM counselors who took and passed the exam on or before October 2, 2009, will automatically be included on the HECM Counseling Roster and remain there for three years. After three years, the counselor must retake and pass the exam to remain on the Roster.

Lenders are required to give every client a list of HECM counseling providers that includes no fewer than nine HUD-approved counseling agencies, with

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  • Five agencies in the local area and/or state of the prospective borrower
  • At least one of the local agencies located within a reasonable driving distance for the purpose of face-to-face counseling, and
  • The four national intermediaries that provide telephone counseling
    − National Foundation for Credit Counseling (NFCC) – 1-866-698-6322
    − Money Management International (MMI) – 1-877-908-2227
    − National Council on Aging (NCOA) – 1-800-510-0301, and
    − Consumer Credit Counseling Service of Atlanta (CCCS of Atlanta) – 1-800-251-2227.

Lenders can obtain a list of these counseling agencies from the HECM Counselor Roster beginning October 2, 2009. Only agencies that appear on the HECM Counselor Roster may be included on the list given to prospective borrowers.

Mortgagee Letter 2009-47

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    • I personally heard a top execs with one of the big RM lenders say they would like to do a marketing affiliation with AARP and are in discussions…just like United Health Care and Delta Dental. I have clients who have bought auto insurance solely on the basis of an AARP endorsement.

      • There have been rumors about this for a long time, they picked up again big time when AARP backed out of counseling but have since died down.

        I wouldn't be surprised if it happens soon.

  • I just lost my first HECM loan to the new counseling protocol. Borrower said counseling session was too long, too difficult and counselor asked too many questions, so borrower withdrew the loan. Hope this is only 'anecdotal.'

  • I just lost my first HECM loan to the new counseling protocol. Borrower said counseling session was too long, too difficult and counselor asked too many questions, so borrower withdrew the loan. Hope this is only ‘anecdotal.’

  • I personally heard a top execs with one of the big RM lenders say they would like to do a marketing affiliation with AARP and are in discussions…just like United Health Care and Delta Dental. I have clients who have bought auto insurance solely on the basis of an AARP endorsement.

  • There have been rumors about this for a long time, they picked up again big time when AARP backed out of counseling but have since died down.rnrnI wouldn’t be surprised if it happens soon.

  • While I would like to hope, revguyjim, that your loss was temporary, I suspect the financial situation of this particular Senior was not dire enough yet. While I always encourage many hestitant Seniors to put a FHA HECM in place to protect against the unknown at our age, this suggestion doesn't
    impress most. Procrastination is forever a fault of too many. Perhaps if the counseling session drove away your client, for the time being you are better off. As far as AARP goes, I have often wondered why one of the “Big Boys” in this business didn't affiliate with them: Say Wells Fargo, Bank of America,
    or MetLife. Will be interesting to see if when and if that happens, Origination and other fees will go down based upon their volume. I've always wondered why one doesn't see RM ads in their publications: For the smaller Companies for sure it is a matter of cost; perhaps the AARP Advertising
    Sales Department was discouraged from selling the Industry, pending an AARP affiliation. AARP for a long time was a “closed shop” when it came to advertising in their publications: As I've said before in this blog, it took a law suit from the cart folks at Electiric Mobility to open their media to other and all advertisers. I've often wondered how much money ARRP gets from their endorsed affiliate Companies. Being a “non-profit”, surely that information is available somewhere.

  • While I would like to hope, revguyjim, that your loss was temporary, I suspect the financial situation of this particular Senior was not dire enough yet. While I always encourage many hestitant Seniors to put a FHA HECM in place to protect against the unknown at our age, this suggestion doesn’trnimpress most. Procrastination is forever a fault of too many. Perhaps if the counseling session drove away your client, for the time being you are better off. As far as AARP goes, I have often wondered why one of the “Big Boys” in this business didn’t affiliate with them: Say Wells Fargo, Bank of America,rnor MetLife. Will be interesting to see if when and if that happens, Origination and other fees will go down based upon their volume. I’ve always wondered why one doesn’t see RM ads in their publications: For the smaller Companies for sure it is a matter of cost; perhaps the AARP AdvertisingrnSales Department was discouraged from selling the Industry, pending an AARP affiliation. AARP for a long time was a “closed shop” when it came to advertising in their publications: As I’ve said before in this blog, it took a law suit from the cart folks at Electiric Mobility to open their media to other and all advertisers. I’ve often wondered how much money ARRP gets from their endorsed affiliate Companies. Being a “non-profit”, surely that information is available somewhere.rn

  • By the way I should have added, an honorable Veteran’s Day to all you Vets out there. Let’s all pray for those Military personnel in harms way today.

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