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Industry Articles Home > Reverse Mortgage News

Another organization announces free reverse mortgage counseling
2010-01-20

The National Council on Aging became the latest group to announce that it would pay for seniors' reverse mortgage counseling sessions.

Counseling is required for seniors who are applying for a home equity conversion mortgage (HECM), by far the most popular kind of reverse mortgage. Roughly 95 percent of all reverse mortgages are HECMs; their popularity stems from the fact that they can be FHA-insured, potentially lowering their interest rates and making them easier for an applicant to get.

The typical fee for a reverse mortgage counseling session is $125, but counselors who are a part of the NCOA's Reverse Mortgage Counseling Services network are waiving the fee until the end of April.

"Home equity can keep small financial challenges from becoming overwhelming problems, but many homeowners need guidance on how and when to use this asset," NCOA Home Equity Initiative vice president Barbara R. Stucki suggested.

Seniors may turn to reverse mortgages after finding that their retirement savings are insufficient or that their portfolios aren't as flush as they once were. Expensive medical treatments may require quick access to cash, as well. Some people may just want to fund home improvements or a dream vacation.

Whatever the reason, experts say, reverse mortgages can be a valuable tool for seniors in need of improving their liquidity position.
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