What is the primary purpose of reverse mortgage counseling?
Counseling ensures that borrowers fully understand the terms, risks, and alternatives to a reverse mortgage.
When must reverse mortgage counseling be completed?
HUD requires that counseling is completed before the loan application can proceed.
What document must a counselor provide to a client?
A counseling certificate is required to proceed with the reverse mortgage application.
Why is unbiased communication important in counseling?
Counselors must provide objective information to help clients make informed decisions.
Which of the following topics is covered in counseling?
Counseling includes topics such as loan options, costs, obligations, and alternatives.
What must counselors avoid during a session?
Counselors must not promote or endorse specific lenders or products.
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How can counselors help clients understand long-term impacts?
Using scenarios and projections, counselors help clients see how loan terms affect future equity.
Who oversees reverse mortgage counselor approval?
HUD maintains the list of approved reverse mortgage counselors and sets standards.
Why should counselors explain client obligations?
Clients must understand tax, insurance, and maintenance responsibilities under a reverse mortgage.