Before moving forward with a reverse mortgage, all applicants are required to complete a counseling session with a HUD-approved agency. This step is mandated by the Federal Housing Administration (FHA) to ensure that borrowers fully understand how a reverse mortgage works and how it may impact their financial future.

This counseling isn’t meant to convince anyone to move forward or to talk them out of it. Instead, the goal is to provide clear, unbiased education so that borrowers can make an informed decision with confidence.

What to Expect from the Counseling Process

The first step is for the borrower to schedule a session directly with a HUD-approved counseling agency. While your lender cannot initiate or attend this meeting, they can offer a list of agencies for you to contact. Sessions can take place either over the phone or in person. HUD generally recommends face-to-face meetings when possible, but both options are valid.

Before your appointment, the counseling agency will send you a packet of materials to help you prepare. These documents outline the key components of a reverse mortgage and give you a head start on the conversation.

During your counseling session, you’ll have the opportunity to:

• Discuss your current financial situation and long-term needs

• Review your reasons for considering a reverse mortgage

• Ask any questions you may have

• Explore both the benefits and drawbacks of a reverse mortgage

• Learn about alternative options that may also meet your needs

The counselor’s role is purely educational. They do not represent the lender and are not trying to sell or promote the loan product.

What Happens After the Session?

Once your session is complete, you’ll receive a Certificate of Completion. This document confirms that you’ve fulfilled the counseling requirement and have been fully briefed on the fundamentals of a reverse mortgage. A copy of the certificate will also be sent to your lender, allowing the loan process to move forward.

Most agencies also follow up with borrowers to ensure that all questions have been answered and to provide additional support if needed.

Why Counseling Matters

Reverse mortgages are an individualized financial tool, and no two borrowers are the same. This required counseling session helps make sure that every applicant enters the process with clarity, understanding, and the ability to make the decision that’s right for them.

If you’re thinking about a reverse mortgage, completing the counseling session is an important first step—not just because it’s required, but because it empowers you to move forward with confidence and peace of mind.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.