NFCC Promotes HECMs, But Warns Seniors Of Risks

Posted by Orb Staff on June 23, 2010 No Comments
Categories : Residential Mortgage

tional Foundation for Credit Counseling (NFCC), the nation's longest-serving national nonprofit credit counseling organization, has released a statement advocating reverse mortgages as a potential solution for older Americans who are ‘house rich and cash poor.’ A June 21 NFCC press release outlines eligibility requirements relating to the Federal Housing Administration's Home Equity Conversion Mortgage (HECM), explaining that HECM borrowers must meet with a housing counselor who is approved by the U.S. Department of Housing and Urban Development. ‘This is a protection to the consumer, as the terms and options associated with a reverse mortgage can be complicated,’ NFCC states in its release. ‘For instance, consumers need to fully understand that the up-front costs can be quite steep, and that money received from a reverse mortgage can be counted as income or an asset that restricts eligibility to some government programs. A reverse mortgage may not be your best option, and the counselor's role is to review all the options available to you.’ NFCC member agencies have close to 500 certified HECM counselors, the group additionally notes. SOURCE: [link=http://www.nfcc.org/NewsRoom/newsreleases/files10/ReverseMortgageNationalEnglish.pdf]National Foundation for Credit Counseling

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