Reverse Mortgage Information

The Department of Housing and Urban Development recently announced that more that $52 million has been ear marked for different housing counseling projects aimed at helping more families to retain and preserve their homes. The total amount is a 23% increase of about 11 million from last year which was just $41 million.

From the $52 million budgeted for HUD’s Housing Counseling Grant program, $8 million has been specifically reserved for Reverse mortgage Counseling. This amount is double the 4 million amount spent on reverse mortgage counseling programs last year by HUD. The grants will be competitively awarded to hundreds of counseling agencies approved by HUD and State Housing Finance Agencies. In total HUD grants will be awarded to approximately 400 applicants. Interested applicants can download applications from the HUD’s official website.

Counseling agencies are very important in helping people make better mortgage decisions and avoid foreclosure. With the economic depression the roles of these counseling agencies even becomes more critical. According to Shaun Donovan, HUD Secretary “These counseling agencies are also vital to the success of the President’s Making Home Affordable Plan which is helping families avoid foreclosure and remain in their homes.” He was further quoted as saying “Now, more than ever, it is crucial that American families make informed decisions about their housing choices.”

By Housing and Urban Development mortgage requirement, most reverse mortgage loan requires that the applicant undergo mortgage counseling first before the loan is granted. Counseling grants are designed to help counseling agencies increase the quantity and quality of their services.

To qualify for the counselling grants, counselling agencies would have to download applications  from the HUD website on or before July 17th. The forms have to be filled, submitted and should reach the reviewing office of HUD within five days.