HUD publishes new reverse mortgage advice guidance
HUD published a “Toolkit” details this month How someone can become a HECM schedule advisor. The document “outlines the steps required for HECM schedule certification, including training, research and maintaining the active status, and emphasizes the importance of providing accurate and unbiased counseling to potential HECM -Leners,” Hud said.
The document outlines the basic principles of the HECM program and the accompanying counseling requirements; Details The steps for obtaining HECM schedule certification from the agency and offers other means for HECM roasting advisors.
The Hud Housing Counselor certification is independent of the HECM schedule certification, although there is some overlap. A counselor “must be a HUD-certified housing adviser and on the HECM schedule to offer HECM Origination counseling”, explains the document, which means that an extra step is required for a HUD-certified housing adviser who also offers services for HECM-Leners during the origin.
Standard HUD-certified counselors can offer a reverse mortgage stand or other types of reverse mortgage advice, but require a HECM-specific certification for the origin of Federal Housing Administration (Fha) -driven HECM loans.
“HECM roster advisors are not allowed to offer or perform services that conflict or seem to conflict with the best financial interests of the customer,” the document said. “In turn, reverse mortgage providers may not send a customer, immediately, order or otherwise encourage the services of a certain counselor or advisory body.”
Was a second, smaller document Also published this month Specifically designed for counseling agencies approved by HUD. It offers guidelines on what agencies should know about HECM and reverse mortgage advice.
It repeats some of the requirements described in the first document, and adds that HUD can also offer general group education approved by HUD about reverse mortgages, but this does not take the place of one-on-one counseling for the HECM certificate, “it says. “There are a few important steps that an agency must take to offer reverse mortgage and/or HECM counseling.”
The document also provides information about adding HECM counseling to the work plan of an agency; Tackling the method of delivery for advisory services (ie virtual, by telephone or personal); communicating reimbursements and disclosures; Supporting HECM selection certification and compliance; And maintaining documentation from client files.
Last month, non -profit organization Bureau Credit.org Announced that it will offer more potential reverse mortgage lenders a new e-learning course that aims to demystify reverse mortgages for interested parties.
