Why does the Federal Housing Administration require Reverse Mortgage Counseling by an independent third party?
A Reverse Mortgage borrower is required to receive counseling from an independent party when applying for a Reverse Mortgage. This counseling session is designed to protect the borrower by providing information about Reverse Mortgages from an independent third party approved by FHA. The counseling session can be conducted by phone or in person. The cost of counseling may vary based upon the service provider selected by the borrower. The cost of counseling cannot exceed $125.00.
