The National Council on Aging (NCOA), one of the five national counseling intermediaries for seniors interested in a reverse mortgage, has begun offering free reverse mortgage counseling for home owning American senior citizens via its RMCS (Reverse Mortgage Counseling Services) network.
The Department of Housing & Urban Development (HUD) has funded NCOA with $2.53 million to counsel seniors on the benefits and risks of reverse mortgages through its National Reverse Mortgage Counseling Services Network.
The usual $125 counseling fee is temporarily waived by counselors affiliated with the RMCS. Reverse mortgages benefit seniors who have home equity, but need money. The free counseling is intended to help educate more senior home owners on how reverse mortgage loans can help them remain in their homes, help with financial difficulties & improve their general quality of life.
Barbara R. Stucki, Ph.D., vice president of the Home Equity division for NCOA saysthat the NCOA is offering free counseling so that older seniors can learn how to use homeequity to draw cash when other assets such as stocks and bonds may have depleted as asource of income. This is because an increasing number of senior citizens are seen to bestruggling with day-to-day expenses yet they own homes which have considerable value in them.
Counselors must follow protocol to explain how HECM works, costs, and provide a calculation of principal limit. They also explain the financial implications of HECM and provide alternatives. Counselors must have received HECM training/education within the past two years and have passed the standardized HECM exam.
Seniors can schedule a counseling session by calling the toll-free number for the NCOA counseling network at 800-510-0301.