Housing counseling agency CredAbility announced Monday that it will waive all of its reverse mortgage counseling fees, effective Oct. 30, after reintroducing them earlier this month when its federal funding began to run out.
Many counseling organizations have reportedly been experiencing an increase in the number of borrowers attending counseling sessions without ultimately closing loans. Additionally, the $4 million in federal funding awarded to counseling agencies for reverse mortgage counseling this year is running low, which has led some counseling agencies—including CredAbility—to begin charging prospective reverse mortgage borrowers upfront.
Despite uncertainty regarding the future of counseling funding, CredAbility has opted now to waive its counseling session fees in hopes of further educating consumers about reverse mortgages free of charge.
“We believe it’s important for every consumer to get financial education about reverse mortgages at no cost,” CredAbility spokesman Scott Scredon told RMD in an email. “We don’t believe they should be saddled with another financial burden that may stop them from receiving counseling.”
Written by Jason Oliva