New Tools Help Reverse Mortgage Industry Follow HECM Protocol

The Reverse Mortgage Counseling Association (RMCA), a non-profit trade association, is offering a new tool to help streamline the HECM counseling process and increase consumer knowledge about reverse mortgages.

Through, consumers, lenders, and counselors have access to new tools that help them effectively follow the new HECM Counseling protocol.  “This new program helps the counselors and clients share required information efficiently and ensures that clients are well prepared for their counseling session,” said RMCA in a statement.

Developed by IBIS Software, the web based tool creates a unique website for potential borrowers to run reverse mortgage scenarios based on their own individual circumstances. If a lender creates a “sandbox”, the website shows the reverse mortgage products offered by that lender. If the sandbox is created by counselors or consumers, they can select from an array of products.

As part of the new HECM counseling protocol, which starts Sep. 11, 2010, borrowers must receive a large information package that includes individualized loan tables.  Counseling agencies are required to provide this package to clients and ensure they have enough time to review prior to the session.

However, lenders can help clients avoid frustrating delays in counseling by using the system and providing the documents to the borrower directly.  Through the system, the counselor will be able to pull up the clients information and documents.

”Whichever counselor the senior decides to work with, the counselor will be using accurate loan scenarios and will not have to explain confusing differences in figures between what clients have received from a lender and what they hear during the counseling session,” said RMCA in a statement.

Additionally, RMCA released the counseling locator.  The RMCA counselor Locator includes a list of agencies and offices, both RMCA members and non-members, which comply with HUD Mortgage Letter 2009-47. The RMCA Locator software automatically scrapes HUD’s roster of approved HECM counselors.

RMCA has provided RMD readers with their own unique ID to try the software.  To check it out, head over to and use the ID “RMD”.  Lenders can also sign up for the service at no cost at the website.

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