Quick Answer
The HUD counseling session is a 90-minute independent conversation covering the reverse mortgage's mechanics, costs, ongoing obligations, alternatives, estate implications, and your specific questions — with the counselor required to present information objectively and from the borrower's perspective, not the lender's.
- Duration: approximately 90 minutes by phone or in person.
- Topics: program mechanics, costs, payout options, ongoing obligations, alternatives.
- The counselor works for you, not the lender — fully independent.
- You can bring family members and ask any question.
- At the end, you receive a counseling certificate valid for 180 days.
- The counselor can recommend against proceeding if the situation is unsuitable.
Key Facts
| Topic | Key Fact |
|---|---|
| Duration | Approximately 90 minutes |
| Curriculum | HUD-standardized — same topics covered by all approved agencies |
| Independence | Counselor works for the borrower, not the lender |
| Topics covered | Program mechanics, costs, obligations, alternatives, NBS rights |
| Certificate validity | 180 days from date of session |
| California note | 7-day cooling-off begins after session |
| Alternatives discussed | Home sale, HELOC, downsizing, government assistance programs |
| Family participation | Permitted and encouraged |
Detailed Explanation
The HUD counseling session follows a standardized curriculum that all HUD-approved agencies use — ensuring consistent, comprehensive coverage of key topics regardless of which counselor conducts the session. The counselor begins by collecting information about the borrower's financial situation, household composition, and goals for the reverse mortgage, then proceeds through the curriculum adapted to the borrower's specific circumstances.
Program mechanics covered in the session include: how the loan balance grows over time (reverse amortization), payout options (lump sum, line of credit, monthly tenure or term payments), the principal limit calculation and what affects it, the ongoing obligation requirements (property taxes, insurance, occupancy), and the events that trigger loan repayment. The counselor uses HUD's published tables and calculators to illustrate these concepts rather than relying on the lender's projections.
Costs are a required topic — origination fees, FHA mortgage insurance premium, appraisal, title, and closing costs. The counselor explains what each cost covers and how it affects the net proceeds available to the borrower. The FHA MIP in particular — both the upfront MIP (2.0% of the HECM limit or appraised value) and the annual MIP (0.5% of the outstanding balance) — is explained in context of the non-recourse guarantee it funds.
Alternatives to the reverse mortgage are a mandatory discussion topic. The counselor presents home sale, HELOC, home equity loan, downsizing, property tax deferral programs, and other government assistance programs as options that may better serve the borrower's needs in some situations. The counselor's presentation of alternatives is objective — not positioned to steer toward or away from the reverse mortgage — because the counselor's obligation is informed consent, not transaction facilitation.
Jay Zayer, CRMP — 18 Years Experience
I always ask clients what questions they plan to bring to the counseling session, and I help them prepare. The counselor session is most valuable when the borrower shows up with specific questions that go beyond the curriculum: What happens to my spouse if I go to a nursing home? How does the reverse mortgage affect my Medi-Cal eligibility? What happens to the line of credit if home values drop? These are the questions the curriculum does not always reach. I want every client to leave the counseling session having asked the questions that matter most to their specific situation.
Who This Is Right For
This may be a good fit if:
- Every HECM applicant preparing for the mandatory counseling session
This may NOT be the right fit if:
- There is no situation where being prepared for the counseling session would be inappropriate
Common Misconception
Myth: The HUD counseling session is a quick rubber stamp.
Fact: The session is approximately 90 minutes and covers program mechanics, costs, alternatives, ongoing obligations, and estate implications. A thorough counselor will raise questions and concerns that may affect the borrower's decision.
Source: HUD counseling program curriculum
Authoritative Sources
- HUD: Counseling curriculum — hud.gov
- NCHEC: Reverse mortgage counseling standards — nhcac.org
- CFPB: Reverse mortgage counseling — consumerfinance.gov
People Also Ask
What questions should I ask at the HUD counseling session?
Bring questions about your specific situation: how the loan affects your spouse, Medi-Cal eligibility, what happens if home values drop, the ongoing obligation details, and what happens when you pass away.
Can I bring my adult children to the HUD counseling session?
Yes — family members, financial advisors, and other trusted parties are welcome to participate in the counseling session.
What if the counselor recommends against the reverse mortgage?
The counselor's job is to provide independent information. If they recommend against proceeding, take that seriously and discuss with your CRMP. You are not obligated to proceed, and a counselor recommendation against it is worth understanding.