In addition, counselors must complete an extra level of financial assessment to help prospective borrowers gain a greater understanding of financial risk and other factors that they need to consider to make a wise decision.
“We are pleased to work with HUD to provide additional education and support to older adults seeking to tap their home equity through a reverse mortgage,” said Barbara R. Stucki, Ph.D., vice president of Home Equity Initiatives for NCOA. “We created these new tools to help older homeowners better understand their options and risks in using what is most often their most valuable financial asset -- their home.”
HUD released its Housing Counseling Handbook, which includes its new HECM reverse mortgage counseling protocol, in mid-July. Counselors are required to implement the protocol by Sept. 11, 2010. The new protocol is designed to strengthen consumer education for homeowners aged 62+ who seek a HUD-approved reverse mortgage. It includes NCOA’s booklet, counseling tool, and online benefits screening service.
Free copies of the NCOA booklet, Use Your Home to Stay at Home, can be downloaded at www.ncoa.org/reversemortgagecounseling, in English or Spanish.
Editor's Note: With any decision of this magnitude, consult a financial advisor (preferably a fee-only planner) to help you investigate this new product.
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