Money Management International (MMI) started providing free HECM counseling to borrowers interested in reverse mortgages as of February 1st said the company.
The announcement comes days after the Department of Housing and Urban Development lifted the cap on the amount of money charged to borrowers for HECM counseling. MMI is using the $1.4 million in grants it received from the agency to provide the free services.
“MMI received a significant increase in funding over last years HUD awards, so we are confident we can provide counseling free of charge for the rest of the grant year,” said Daniel Fenton, Housing Director at MMI. “At a time when many seniors are facing financial hardship, we are happy to provide counseling with no financial commitment from homeowners still considering their options.”
As part of the new HECM counseling fee guidelines issued by HUD, agencies can determine the appropriate fees charged for their services based on specific criteria. If the client receiving HECM counseling services has an income level that falls below 200 percent of the Federal Poverty level, the agency may defer collection of payment until closing.
Previously, the max amount a counseling agency could charge for HECM counseling was $125.
