Will HUD's new guidelines transform reverse mortgage counseling?

"Counseling agencies are no different, Opperman said, although she doesn't think Credit.org will be constrained at all due to its small army of long-tenured HECM reverse mortgage counselors. The whole silver tsunami thing, it is so real, she added. As these baby boomers are growing older, we are already seeing the increased demand for senior-focused financial solutions like the reverse mortgage."

"Quality counseling is really what is helping the seniors understand the HECM product, and then, of course, there's proprietary reverse mortgage products. It's really helping them understand what options they have. And all HUD-approved HECM housing counselors, they're unbiased educators. We don't represent lenders. The counseling is there to serve the homeowner. Like any financial product, reverse mortgages have both benefits and risk, and because of that, counseling is required to ensure the homeowners make an informed decision."

"This coincided with the department's decision to partner with real estate listings giant Zillow on its Let's Make Home the Goal campaign. The advertising push is designed to spread awareness about the benefits of HUD-certified counseling prior to a home purchase, particularly for underserved borrower groups such as communities of color. More specific to the reverse mortgage industry, however, is HUD's clarification that HECM counseling can be conducted via virtual platforms, telephone or hybrid models, as long as in-person options remain available on request."

Reverse mortgage lenders and counseling agencies face growing demand as baby boomers age and seek senior-focused financial solutions. Credit.org currently relies on long-tenured HECM counselors and does not expect immediate constraints. Counseling capacity and delivery methods must expand and adapt to serve an increasing senior population. Quality, unbiased HUD-approved counseling helps homeowners understand HECM and proprietary reverse mortgage options and weigh benefits and risks. Counseling is required to ensure informed decisions. In October 2024, HUD clarified that HECM counseling can be delivered virtually, by telephone, or via hybrid models while preserving in-person options and launched outreach with Zillow.

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