One of the benefits of a reverse mortgage is that you are required to speak with a third-party counseling agency to determine if you want to continue with the mortgage itself. This third-party counseling agency is not affiliated with One Reverse Mortgage, or any other lender, per the laws governing reverse mortgages.
When speaking with an ORM reverse mortgage expert, we are required by the Department of Housing and Urban Development (HUD) to provide you a list of counselors that you can choose from. We are not allowed to steer you in the direction of a specific counselor. This keeps the session unbiased. HUD has prescreened and approved these agencies to do the counsel and to give you an unbiased review of everything that we as a reverse mortgage lender have provided you.
Why Do You Need Counseling?
This is a pretty standard question that our licensed experts get many times, and the simple answer to this is because HUD wants to add another fail safe between the lender (One Reverse Mortgage) and the borrower (you) to make sure that you understand everything about the reverse mortgage you are about to take out. One Reverse Mortgage not only accepts this, but also encourages its use. A third party, not affiliated with One Reverse Mortgage, will go over the actual figures with you, make sure that you understand the process and the program, and also help reinforce many of the points that One Reverse’s licensed experts have spoken to you about. The counselor will also discuss other financial options you may have, so you can make an educated decision. This is a level of transparency that many loan programs do not have to go through, but it is a piece of mind to you as the borrower.
What is the Process?
After speaking to an expert, you will be provided a list of local and national companies that to choose from. From there, you will schedule the counseling session. This session is specifically for you to learn about the choice that you have made and to make sure that you are getting what has been outlined to you by us. The counseling agency is not affiliated with One Reverse Mortgage, or any of the Quicken Loans Family of Companies. Some counseling agencies, if they are local, may schedule a face to face meeting, but most of our clients opt to go with a national company that will do it over the phone. It is important to note that some states do require a face-to-face counseling session.
The counseling session lasts about an hour. The counselor will review your other financial options and also inform you of any state or federal programs that the reverse mortgage may impact on you or your family. The role of the counselor is not to push you towards a specific path, but rather to inform you of your options and to make sure that you understand the program and how the reverse mortgage will affect you once you have closed.
Once you have set up a counseling time, you will get an information packet from us that will contain a printout of the loan comparisons that you will go over with your counselor. You will also go over this with your licensed expert before counseling is even set up. Going over it again with the counselor will validate that any information you heard from us is in line with what is being said by the counselor.
Once you are done with the counseling session, you will still have the ability to contact the counselor if you have any outstanding questions, but you are also able to communicate to your licensed expert as well. The goal at One Reverse Mortgage is to give you as much transparency as possible, and the use of a third-party, HUD-approved counselor is another fail safe that we encourage because we know getting a reverse mortgage is a very important decision that you are making.
At the conclusion of your counseling session you will get a certificate of completion, which will verify to us that you have gone through the program and can continue on the process of closing your loan. You will need to send us this counseling certificate before we can move to the next step of the reverse mortgage process.
These materials are not from HUD or FHA and were not approved by HUD or a government agency.