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MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

The Job Of The Reverse Mortgage Counselor

Because reverse mortgage means dealing with money that the homeowner receives through a special type of home loan that allow the owner later on to convert it into a lump sum cash payout, monthly payments or a credit line the importance of the reverse mortgage counselor is crucial. There are some rules stipulated in the type of loan you choose that can be interpret by the reverse mortgage counselor, which will also make sure that you fully understand what is needed in order to receive the loan, answer some questions you have about reverse mortgage and make you aware of the consequences and benefits that you have when deciding on purchasing a reverse mortgage loan.

One option that you have before getting a reverse mortgage loan is to talk to a reverse mortgage counselor and receive information about all three current reverse mortgage products before you can get any loan. In fact the FHA and HUD require that is mandatory for every senior that wants a reverse mortgage loan to talk to a reverse mortgage counselor before they can get any loan from any financial institution.

The reverse mortgage counseling requested by the FHA and HUD is a third party education counseling session that requires no cost and can be completed either by phone or at their location. The reverse mortgage counselor will make sure that you understand the entire process and the counseling is compulsory for your protection. A counseling session can last between 25 minutes to 2 hours depending on the questions that you might have. It is also important to bring the necessary documents that you counselor asked for once you scheduled your appointment.

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