HECM Resources

The
AARP Foundation's
Reverse Mortgage Education Project

The AARP Foundation's Reverse Mortgage Education Project (RMEP) provides independent information to consumers about reverse mortgages and other, less costly alternatives. It also provides support services to a national network of counselors approved by the U. S. Department of Housing and Urban Development (HUD) to counsel consumers interested in HUD's Home Equity Conversion Mortgage (HECM) program. The RMEP is funded by HUD and the AARP Foundation.

HECM counselors are required by federal law to provide information on the costs and financial implications of HECM loans, and on alternatives to HECMs that may be available to consumers. HUD's National HECM Counseling Network counselors have achieved the qualifying score on a national HECM counselor exam approved by HUD, and have been approved by HUD to provide HECM counseling by telephone on a nationwide basis. 

The support services provided to the HUD National HECM Counseling Network and HUD by the RMEP include the following:    
 
1)  Generic Consumer Resources

a.    RMEP provides a a 46-page consumer guide to reverse mortgages: available via toll-free number, online ordering, and downloading from the web; single copies are free to individual consumers, bulk orders are free to HUD-approved counseling agencies; also available in Spanish

b.    RMEP provides two consumer information websites: a 30-page basic site at www.aarp.org/revmort (which includes two interactive calculators), and this site at  www.hecmresources.org

c.     RMEP promotes public awareness of reverse mortgages in general and its generic consumer resources in particular via  media interviews and articles in AARP publications

d.    RMEP assists other organizations (e. g., Federal Trade Commission, American Bar Association) in developing and promoting their own generic consumer resources  

e.    Generic consumer resources promote HECM counseling efficiency because they answer many basic questions. These answers lead some consumers not to request counseling, and others to focus the counseling more on their own individual needs and circumstances.   

2)  HECM Counseling Referrals - RMEP provides national counseling referrals via a toll-free number and an on-line guide to network counselors

3)  HECM Counselor Training - RMEP provides

a.    basic HECM counselor training via on-site sessions in cooperation with the NeighborWorks Training Institute (and is developing an on-line version of this training)

b.    advanced HECM counselor training via national or regional conferences for network counselors

4)  HECM Counselor Exam  

a.    RMEP assists HUD in designing and administering a HUD-approved national computer-based HECM counselor exam.

b.    RMEP analyzes the exam's results, and uses the analyses to improve the exam.

5)  HECM Counseling Protocol    

a.    RMEP developed and updates a detailed protocol of HECM counseling policies and procedures with input from HUD, an industry advisory committee, and network counselors.

b.    The current version of the protocol is a consensus document based on discussions involving HUD, RMEP, and two national intermediaries for housing counseling selected by HUD: the National Foundation for Credit Counseling, and Money Management International.

c.     The protocol promotes HECM counseling quality by providing operational guidelines for network counselors.    

6)  Model Loan Analysis Software

a.    RMEP developed and achieved consensus among industry and consumer interests on technical specifications for model reverse mortgage analysis and comparison software.

b.    RMEP updates and revises the specifications as new issues arise.

c.     RMEP coordinates software access and support for HECM counselors

d.    An online version of the software is currently being developed.

7)  HECM Counselor Support & Development - RMEP provides

a.    expert back-up support, technical assistance, individualized mentoring, and ad hoc coaching for network members 

b.    an on-line library of HECM and related resources, including
a state-specific database of alternatives to HECM loans

c.     updates on the HECM program, market developments, and
network news via a password-protected RMEP website

d.    online programs for client intake and scripted screening
of potential clients (and is developing an on-line site for
issuing and tracking HECM counseling certificates)

e.    intra-network bulletin boards on selected topics

f.      intra-network counseling referrals via an on-line
"posting/claiming" system and RMEP pre-screening

g.    facilitation of emergency, evening, and weekend counseling, counseling on proprietary (non-HECM) reverse mortgages, and counseling requiring multi-party conference calls or translation services

8)  HECM Counseling Evaluation

a.    RMEP sends a follow-up client satisfaction survey to network counseling clients.

b.    The survey provides client ratings on multiple aspects of RMEP's information and network counseling services.

c.     The ratings track trends over time and can be used to measure individual agency and counselor performance.  

9)  HECM Program Issues - RMEP alerts HUD to HECM program issues that arise in counseling.  

AARP does not endorse any reverse mortgage lender or product. But it wants consumers to have the information they need to make informed decisions about these loans and other, less costly alternatives.