HUD-approved reverse mortgage counseling is an independent conversation, usually about two hours, covering costs, borrower obligations, alternatives, and whether a reverse mortgage fits your situation. 24 CFR 206.41 requires it before a HECM can close. The originator does not sit in. Jay Zayer, a Certified Reverse Mortgage Professional serving California and Arizona, wants the session to feel like education, because a certificate issued after a joint sales meeting would be the wrong document.
You will pay the agency $125–$175 in the range Jay quotes. You should walk out with a certificate good for 180 days from the session date.
How long is the session, and what gets covered?
Plan on about two hours. Counselors follow HUD’s HECM protocol and a loan-comparison worksheet. Topics track National Housing Act section 255(f): the implications of a reverse mortgage, borrower obligations, costs, and alternatives such as a forward loan or a sale.
Bring a payoff estimate, a tax bill, and a sense of whether you need a lump sum, a line, or monthly advances. A worksheet built on invented numbers teaches nothing. Ask about occupancy, property charges, what happens at death, and whether a LESA looks likely. A LESA, if later required, is set at origination and cannot be added after closing.
Phone and video sessions count when the agency is HUD-approved. In-person is available some places and is not a California legal mandate. California does require a list of at least ten agencies (Civil Code section 1923.2(j)) and a seven-day wait after the session before a complete application (1923.2(k)). Arizona uses 24 CFR 206.41 without that seven-day statute.
See how to find a counselor for the list. See the certificate for the paper you must keep.
Can the originator sit in or coach the answers?
No. Independence is the consumer protection. 24 CFR 206.41 and HUD counseling protocols keep the loan officer out. A child or a trusted friend may listen if the counselor agrees. They cannot take the session for you. A power of attorney does not let someone skip counseling the borrower HUD requires.
Do not read answers off a script the originator emailed. Ask the hard questions. If the originator’s later Loan Estimate contradicts the worksheet, stop and reconcile.
Proprietary products such as HomeSafe or other private programs still need an honest comparison in California origination. Tell the counselor if you are comparing a HECM and a proprietary file so the worksheet is not HECM-only fiction.
What should you walk out holding besides the certificate?
Notes on occupancy, property charges, the first-year disbursement cap in 24 CFR 206.25, and what heirs face under 24 CFR 206.125. A clear sense of whether a sale or a HELOC is the better tool. The agency’s invoice. The session date, because California’s seven days and the 180-day shelf life both start there.
Counseling is not a pass/fail underwriting exam. Residual income, the appraisal, and title still decide the loan. A certificate means HUD’s education step happened. It does not mean FHA will insure the file.
If the session makes clear that leftover principal limit will not cover the payoff, believe it. Who qualifies and the calculator are the next mechanical steps. If you need the sequence after the certificate, see how a reverse mortgage works.
Ask the counselor to walk through what happens if you later need a nursing facility. Occupancy, not the certificate, will decide that file. See nursing home. Ask what “mandatory obligations” means on your actual payoff, not on a hypothetical.
Take notes in your own words. If you cannot explain occupancy and property charges after the session, you are not done even if a certificate prints. The point is a decision you can live with, not a stamp.
Who should not treat the session as a second sales call?
HUD-approved HECM counseling is an independent education session of about two hours. 24 CFR 206.41 keeps the originator out of the room. The protocol covers costs, including 2.00% initial MIP (Mortgagee Letter 2017-12), occupancy, property charges, alternatives, and what heirs face after a due-and-payable event. The certificate lasts 180 days.
This session does not help a household that wants the loan officer to “just handle it.” Independence is the point. It does not mean FHA will insure the file. Residual income, the appraisal, and title still decide that.
What can go wrong: you cannot explain occupancy after two hours, but a certificate prints. You are not done. Ask about your actual payoff as a mandatory obligation, not a hypothetical. Fees are $125–$175. See HUD counseling for the statutory mandate and the certificate for the paper.
A follow-up: may an adult child ask questions if the counselor allows them in the room? Yes, as a note-taker. They do not replace the borrower. They do not sign the certificate. They do not get a private briefing with the originator afterward that “fixes” answers the counselor already gave. The session is the education. The originator matches it later.