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HECM Counselor Exam Guide
Study Materials
(NOTE: Most of the links on this page lead to web pages at www.hecmresources.org, a site maintained by the AARP Foundation's Reverse Mortgage Education Project. This site serves the dual purpose of providing study materials for the HECM Counselor Exam and online reference materials for HECM counselors in general. It also provides state-by-state information on alternatives to reverse mortgages, and on obtaining counseling via the project.)
HUD/HECM Program Materials
HECM Training Resources
Study Planning
HUD/HECM Program Materials
- HUD Handbook 4235.1 REV-1 is the basic program handbook for the HECM program. However, it was published in 1994, and some of the key program rules have changed since then, as explained in later HUD mortgagee letters, HECM regulations, and amendments to the HECM statute (see below).
ONLINE:
- Go to www.hudclips.org and click on "library"
- Scroll down to "Select all Handbooks . . ." - click button to the left of it
- Then click on the word "SEARCH" directly to the right
- In the "Document number" box, type: 4235.1 - then click on "SUBMIT"
- Click on each individual section of the handbook
- The key sections are Chapters 1-9 and Appendixes 1, 7, 8, and 13
ORDER FREE HARD COPY:
- Call 800-767-7468 or fax to 202-708-2313
- Ask for Item #00133 on "Home Equity Conversion Mortgages"
- Provide your name, agency, mailing address, and phone number
- Allow 7 to 10 business days for delivery
- HECM Mortgagee Letters are issued by HUD to make official changes in the HECM program.
- HECM Regulations are issued by HUD to implement amendments to the HECM statute enacted by Congress.
(This document is in 'PDF' format. Click here if you need to download Acrobat Reader.)
- HECM Statute is the basic federal law that governs the HECM program.
(This document is in 'PDF' format. Click here if you need to download Acrobat Reader.)
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HECM Training Resources
provides many pages of comprehensive information on HECMs, other reverse mortgages, alternatives to reverse mortgages, and two interactive calculators. A hard copy of the site can be downloaded or ordered via the site as the booklet "Home Made Money." But the booklet is not as up-to-date as the website.
To make sure you see all the pages on the site, click on each of the menu items under "Reverse Mortgages" on the left side of the page: Basics, Federally-Insured Loans, Other Choices, and Key Decisions. And then click on each of the pages listed under each of these headings.
- Training Manual This is the training manual used in the AARP Foundation's 2-day, HUD-sponsored HECM counselor training. It's been updated to May of 2006, and includes a wealth of information and references. The handouts with the answers to several training exercises are on a separate Handouts/Answers page. (These documents are in 'PDF' format. Click here if you need to download Acrobat Reader.)
- HECM Counselor Basic Training ONLINE - An online audio-visual version of the AARP Foundation's 2-day, HUD-sponsored HECM counselor training. This 19-session course includes downloadable training materials and has a total run time of 3.2 hours, not including time for trainees to complete homework assignments. For tips on viewing the online training and all the URLs (web addresses) for accessing the 19 sessions, click here.
- Technical Topics These specialized briefings provide detailed information for HECM counselors on these key topics.
- HECM Terminology
- HECM Roles
- HECM Interest Rates
- TALC Disclosures
- Proprietary Loans
- Cash Account
- Home Keeper
- HECM Property Repairs
- Housing Options
- Texas Variations
- HECM Software If you are not familiar with the software provided by HUD for the HECM program, you should get a copy and learn how to use it. To download it, click here
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Study Planning
No single plan of study works best for everyone. One counselor's learning needs and style will differ from another's. Some counselors have a lot more HECM counseling experience than others. As a general guide, however, and whether you will be studying intensively or just reviewing, here is a suggested approach to the materials and resources listed above. (NOTE: The order suggested here is NOT meant to imply an order of importance. All of the materials and resources are important.)
- Begin with the AARP website. Its pages on reverse mortgages provide a quick, easy-to-read general introduction and overview - and the information in them is more up-to-date than the printed version, AARP's 46-page consumer guide, "Home Made Money".
- Then review the comprehensive Training Manual that the AARP Foundation uses to train HECM counselors. At various points it refers trainees to "Home Made Money" - which you will have already read in its online version at www.aarp.org/revmort.
- All HECM counselors should be generally familiar with HUD Handbook 4235.1 REV-1 - but remember that many of the HECM program's key rules have changed since this official program handbook was published in 1994.
- The HECM Mortgagee Letters, Regulations, and Statute show you in official detail what has changed in the HECM program since the HECM law was enacted, and since the handbook was published in 1994.
- Be certain to review the Technical Topics - This page summarizes key information that HECM counselors need to know. It also links you to more detailed information on these important topics.
- Practice using the HECM Software that HUD provides for the HECM program. It shows you how these loans are structured financially, and helps you understand the program's technical terminology.
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