HUD has published its new Counseling Handbook which contains information on the new HECM Counseling Protocol which becomes effective on September 11, 2010.
Counselors are now required to:
Review the client's level of understanding
Discuss the client's needs
Revew the features and costs of reverse mortgages
Examine the borrower's obligations in a reverse mortgage and alternatives to reverse mortgages
Provide the client wit information regarding purchasing annuities with reverse mortgage proceeds
Review the client's level of understanding of the information covered in the counseling session
To Accomplish this, counselors must provide clients with the following documents:
HUD's Preparing for Your Counseling Session
Total Annual Loan Cost Disclosure
The NCOA's booklet, Use Your Home to Stay at Home
Please notify your clients about the new changes, and be prepared with the documents that the counselors will be providing. It is always best practice to review these documents with your clients prior to their counseling session. Most lenders make these documents available through their Origination Software. For the State Specific Disclosure "HUD's Preparing for Your Counseling Session" and the NCOA Booklet, please see the "Forms" page, in the "Client Login" section of our website.