New Counseling Procedures Released For Reverse Mortgages

The U.S. Department of Housing and Urban Development (HUD), after nearly 2 years of studying and revisions, recently published new procedures governing the process for seniors who are counseled for federally insured Home Equity Conversion Mortgages (HECMs). The new procedures provides more detailed information which must be provided ahead of the counseling session, what must be covered, who must attend and covers topics that the counselor can and cannot discuss with the prospective borrower.

Before meeting with a prospective reverse mortgage borrower, a counselor must first mail, fax or email an information packet that includes: a document titled Preparing for Your Counseling Session (attached to the protocol), copy of loan comparisons, copy of the Total Annual Loan Cost (TALC), loan amortization schedule, and a copy of NCOA’s booklet, Use Your Home to Stay at Home.

During the processing counselors must use the Financial Interview Tool, which was developed by the National Council on Aging, to gather information from the prospective reverse mortgage borrower. The tool examines a senior’s ability to meet obligations to support the reverse mortgage, including but not limited to keeping the taxes and insurance premiums up to date on the home. HUD is also permitting counselors to use NCOA’s online tool, BenefitsCheck, to identify federal, state and local programs and services that may be available to the senior.

As part of the process, counselors must ask 10 questions to ensure that a senior comprehends the reverse mortgage’s key elements and if the senior fails to answer at least five of the questions, the counselor may withhold the counseling certificate or schedule a follow up meeting. Some of the elements of the reverse mortgages that would be stressed as part of the process include:

■Client Needs and Circumstances

■Features of Reverse Mortgages

■Client Responsibilities Under a Reverse Mortgage

■Costs to Obtain a Reverse Mortgage

■Financial/Tax Implications of a Reverse Mortgage

■Financial or Social Service Alternatives to Reverse Mortgages

■Warnings About Potential Reverse Mortgage/Insurance Fraud Schemes and Elder Abuse

The guidelines released provide additional detail on some elements of the reverse mortgage counseling process which were previously implied but never formalized in written form according to industry sources.


One Reverse Mortgage to Move to Detroit

One Reverse Mortgage to Move to Detroit
One Reverse Mortgage LLC, the nation’s third largest reverse mortgage lender, today announced it will move its Livonia, Michigan, headquarters to downtown Detroit. The company, and 110 team members, will move to the Compuware Building and share space with its sister companies, Quicken Loans Inc., Fathead and In-House Realty. The move is expected to take place sometime late this summer.

“It is a great time to move to the city, and to be part of a budding group of new-economy, technology-focused companies that are looking to call Detroit home along the new ‘WEBward Avenue’,” said Jay Farner, CEO of One Reverse Mortgage, which conducts its business primarily over the Internet.

The majority of One Reverse Mortgage’s team members will relocate to Detroit, others will remain in the company’s San Diego, California, offices. Those making the move include mortgage bankers, as well as operations, technology and marketing team members.

Growing in popularity in recent years, reverse mortgages offer homeowners over the age of 62 the opportunity to convert a portion of the equity in their home to tax-free cash, while also eliminating the need for monthly mortgage payments. The program has been particularly helpful to those who have seen their retirement investments shrink as a result of the economy, are at risk of losing their homes due to an inability to make monthly payments or are looking to defer taking Social Security benefits early in their retirement.

“The focus on reverse mortgages is at an all-time high, and as baby boomers continue to reach retirement age, the market is expected to grow dramatically,” Farner added.

“Our move allows us to begin transforming Detroit into a high-tech hub of business and ingenuity,” said Dan Gilbert, Founder and Chairman of Quicken Loans Inc. “We expect additional businesses within our family of companies, as well as other technology companies, to join us in the WEBward Avenue corridor in the near future.”

Companies that have previously announced their move to downtown’s new economy, technology corridor, WEBward Avenue, (transforming Woodward Avenue into WEBward Avenue) later this summer include:

– Quicken Loans Inc.
– Fathead
– In-House Realty
– One Reverse Mortgage

To learn more about One Reverse Mortgage, please visit
About One Reverse Mortgage LLC

One Reverse Mortgage LLC is the nation’s third largest retail provider of reverse mortgage products allowing homeowners age 62 and older to convert some of their home equity into tax-free cash without having to sell their home. One Reverse Mortgage was founded in 2001, operates in 43 states across the U.S. and is a Quicken Loans company.
About Quicken Loans Inc.
Quicken Loans Inc. is the nation’s largest online retail mortgage lender and the fourth largest overall retail home lender in the United States. The company closed more than $25 billion in retail home loan volume across all 50 states in 2009. Quicken Loans employs more than 3,000 full-time team members and generates loan production from five web centers located in Michigan, Ohio and Arizona.

Quicken Loans also operates a centralized loan processing facility in Michigan as well as its San Diego-based One Reverse Mortgage unit. “” has been named “Best of the Web” by Forbes and Money magazines. Quicken Loans has been named to Fortune magazine’s list of the country’s “100 Best Companies To Work For” seven consecutive years, ranking as high as #2.

Quicken Loans has also been named in the top 15 of Computer World magazine’s “100 Best Places To Work In Technology” for six years in a row. Quicken Loans will be moving its headquarters and 1,700 full-time team members to downtown Detroit in the summer of 2010. For more information about Quicken Loans, please visit
About Rock Holdings Inc.
Rock Holdings Inc. is the parent company for several financial services related businesses. These client-focused and technologically-driven companies include Quicken Loans, the nation’s largest online home lender and its One Reverse Mortgage unit, the fastest growing reverse mortgage lender in America; Title Source, a nationwide leader of title insurance and settlement services;

Quicken Loans Mortgage Services (QLMS), a mortgage origination platform servicing community banks and credit unions across the country; In-House Realty, the preferred real estate partner of Quicken Loans that matches clients with trusted real estate agents in all 50 states. Rock Holdings, Inc. employs more than 3,500 team members and will be headquartered in downtown Detroit beginning in the summer of 2010.
Source: One Reverse Mortgage LLC

Reverse Mortgage Not Just a Home Mortgage

If you need the counseling required for reverse mortgages (HECM), Call us. We can help! 800-920-2262.
Reverse mortgage is different from a home mortgage loan in that it allows the homeowner to actually receive monthly payments instead of pay monthly payments on a mortgage loan. You don’t have to go through all the trouble of mortgage refinancing and finding the lowest mortgage rates or interest rates like you would to get a regular home mortgage. If you have equity in your home you can use that to get a reverse mortgage.

Reverse mortgages are becoming very popular in the U.S. The Federal Housing Administration (FHA) actually created one of the first mortgage loans of this type. The FHA’s Home Equity Conversion Mortgage (HECM) program enables homeowners to withdraw some of the equity they have in their home to use for home improvements, medical expenses and more.

The homeowner must be 62 years old or older, own their house outright, or have a mortgage balance that is low enough that it can be paid off at the closing with some of the proceeds of the reverse loan. The homeowner also must live in the home that has the reverse mortgage.

Unlike a second mortgage or home equity loan there is no repayment unless the borrower no longer lives in the home as their principal residence. So if you need some help in retirement to help pay your monthly bills and you do have a lot of equity in your home then a reverse mortgage instead of just another home mortgage may be just what you are looking for.


The Benefits You Didn’t Know…

Taking out a reverse mortgage may have its pros and cons, but lately it’s hard to argue that the pros don’t hold more weight. Recent challenges that have been faced by perspective clients have simply been taking the time to compare the best companies and rates!

It used to be that the reverse mortgage process was known for its fees and confusion, but there have been positive noticeable changes. Now, many companies are willing to waive the upfront fees or at least lower them. Be careful with these offers, however, because sometimes the companies that waive the upfront fees may raise the interest rates they charge.

Another favorable part of reverse mortgage is that it is low risk. Due to the fact that the Federal Housing Authority, or FHA, insures these mortgages, it makes the risk of loss much lower, and therefore offering some peace of mind. An additional benefit to having the mortgage be backed by the government comes when the loan is due. In a reverse mortgage the amount owed on the loan will never exceed the worth of the home.

A reverse mortgage does come with some requirements, but not all these requirements should be associated with negative connotations. The first requirement is that the homeowner(s) applying for the reverse mortgage must be 62 years of age or older. The next requirement is that the homeowner(s) must be living in the home they are applying for for at least six months and one day out of the year.

An additional requirement when the reverse mortgage process in underway is that a counseling session must be set up. This counseling session allows the homeowner(s) to speak with a certified housing counselor about the reverse mortgage and alternatives that might be better suited for them. An important fact that the homeowner(s) should be aware of is that the counselor should not be associated with any bank or mortgage company; this makes them a neutral party and helps when it comes to having your best interest.

For questions on reverse mortgage feel free to call the counselors from, toll free, at 1-800-920-2262. There are certified housing counselors ready to answer your questions, helping make this process a little easier.

For more information on reverse mortgage, check out: