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Reverse mortgage counseling set to improve, The New York Times reports 2009-12-08 Reverse mortgage counselors will have to undergo training and follow government protocol in counseling sessions, The New York Times reported this weekend. The loans, also called home equity conversion mortgages, can be insured by the Federal Housing Administration. Homeowners applying for an FHA-insured reverse mortgage will have to go through counseling before winning approval. But, said National Reverse Mortgage Lenders Association executive director Peter Bell, "counselors are not widely available," meaning that many counseling sessions have to be conducted via telephone. The need for remote sessions, and a Government Accountability Office report saying that counseling was inadequate, led the FHA to issue new standards for its counselors. They will have to pass a qualifying exam and undergo periodic training. In addition, says the paper, they will assess applicants' financial situations to determine if a reverse mortgage is the best option. It will be counselors' responsibility to ensure that applicants understand the specifics of a reverse mortgage, the New York Times adds. "We'll be weeding out the bad counselors going forward," said Meg Burns, director of the office of single-family program development at the FHA.  |
