Quick Answer
The HUD reverse mortgage counseling session is a 90-minute telephone conversation with an independent HUD-approved counselor who walks you through how the product works, all payout options, fees, ongoing obligations, heir implications, and alternatives — ending with the issuance of a certificate valid for 180 days.
- The session is conducted by phone and takes approximately 90 minutes.
- The counselor covers: product mechanics, payout options, fees, obligations, heir impacts, and alternatives.
- You can ask any question — the counselor works for you, not the lender.
- The session results in a certificate (HUD Form 92902) valid for 180 days.
- Family members and adult children are welcome to participate on the call.
- Jay prepares every client for the session in advance so they arrive with specific questions.
Key Facts
| Topic | Key Fact |
|---|---|
| Format | Telephone — approximately 90 minutes |
| Who the counselor works for | The borrower — independent of all lenders |
| Topics covered | Product mechanics, options, fees, obligations, heirs, alternatives |
| Can family attend? | Yes — any trusted person can be on the call |
| What you receive | HUD Form 92902 certificate — valid 180 days |
| Counselor's role | Education and disclosure — not a sales pitch, not a veto |
| Fee | $125 to $200 — some agencies offer free sessions |
| How to prepare | Review the product overview Jay provides before the session |
Detailed Explanation
The HUD counseling session is the most underutilized resource in the reverse mortgage process. Borrowers who arrive prepared — knowing what topics will be covered, what questions to ask, and what the counselor cannot and will not do — get significantly more value from the session than borrowers who approach it as a bureaucratic checkbox. Jay provides a counseling preparation document to every client before the session.
The session typically follows a structured outline that mirrors HUD's required counseling protocol. The counselor begins with an overview of how the HECM product works — the payout options, the interest accrual, the ongoing obligations. They then review the borrower's specific financial situation — income, monthly expenses, existing assets — to assess whether the reverse mortgage serves the borrower's stated needs. Alternatives to a reverse mortgage (HELOC, downsizing, government programs, family assistance) are required to be discussed. The heir implications — what happens at death, the NBS rules, the 30-day response window — are covered in detail.
The counselor is required to explain the total cost of the loan — the Annual Percentage Rate (APR), which includes both the interest rate and all fees and is a useful comparison metric across different loan proposals. The counselor cannot recommend a specific lender or product but can answer specific questions about fees and structures that the borrower has received in writing from their lender. Bringing the lender's Good Faith Estimate or Loan Estimate to the counseling session allows the counselor to walk through the specific numbers.
After completing all required topics, the counselor asks whether the borrower has any additional questions and summarizes the key points. If the counselor believes the borrower fully understands the product and the alternatives, they issue the HUD Form 92902 certificate. Some agencies issue the certificate immediately at the end of the call; others process it within 24 to 48 hours and send it by email or mail.
Jay Zayer, CRMP — 18 Years Experience
The question I tell every client to ask the counselor before the session ends is: 'Is there anything about my specific situation that you think I should reconsider before proceeding?' I ask clients to report back the counselor's answer to me. About 80% of the time the answer is 'no significant concerns.' About 15% of the time the counselor raises something worth discussing — an alternative I had not explored, a family situation that creates complexity, or a concern about the borrower's ability to maintain the ongoing obligations. In those cases, I want to know. The counselor's perspective is independent data that I take seriously even when it does not change the ultimate decision.
Who This Is Right For
This may be a good fit if:
- Every HECM applicant — this is mandatory and cannot be skipped
- Family members who want to understand the product alongside the borrower
- Borrowers who want to get the most out of the session by arriving prepared
This may NOT be the right fit if:
- There is no situation where completing and preparing for counseling would be inappropriate
Common Misconception
Myth: The counseling session is just a formality that has to be done to get the certificate.
Fact: The counseling session is a genuine consumer protection that provides the borrower with independent, unbiased education about the product and all alternatives. Borrowers who arrive prepared get real value from the session — not just a certificate.
Source: HUD: HECM counseling protocol — hud.gov
Authoritative Sources
- HUD: HECM counseling protocol — hud.gov
- CFPB: What to expect at counseling — consumerfinance.gov
- NRMLA: Counseling overview — nrmlaonline.org
People Also Ask
What questions should I ask at the reverse mortgage counseling session?
Ask the counselor to explain the alternatives to a reverse mortgage, the implications for your heirs, the total loan cost as an APR, and any specific concerns about your situation. Ask: 'Is there anything about my specific situation that would make you recommend against this?'
Can my adult children attend the reverse mortgage counseling session?
Yes. Any trusted person can be on the call. Many borrowers include adult children because it resolves concerns and questions they may have — and because the heir implications are discussed in detail during the session.
Does the counselor choose which reverse mortgage company I use?
No. The counselor cannot recommend a specific lender, broker, or product. They are independent of all lenders and their only role is education and disclosure.