Counseling for Reverse Mortgages
New funding has finally come to housing counseling agencies in the form of a $40 million dollars awarded by the Federal Housing Administration and Department of Housing and Urban Development.
The funding award, which will help sustain HUD-approved counseling, will go toward helping new and existing homebuyers manage their money as well as achieving financial security at present and in the future.
In a previous blog post, I outlined the benefits of reverse mortgage counseling, and the fact that, while the process has become increasingly complex, the borrower will benefit immensely from it. Many mortgage brokers and lenders will say and explain as little as possible and take advantage of a borrower, which is unethical and not something we do. Reverse mortgage counseling prevents this by making the borrower aware of how the program works before or after speaking to a broker. They will know from the beginning how the program works, what is expected of them, if there are any alternatives to the reverse mortgage, and how best to make it work for their situation.
The FHA and HUD’s move benefits all those involved by using a preventative method for reverse mortgages instead of an offensive one.
Our business model at PS Financial Services, is to disclose everything possible, so that once you speak to a counselor (or one of our brokers) you are hearing everything twice.