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).  BE SURE TO READ THE MORTGAGEE LETTERS!
  
  ONLINE:
  • Go to www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4235.1/index.cfm
  • Click on each individual section of the handbook to read or save them to your computer in Word or PDF versions.
  • 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. This is the way the program is updated and rules are clarified or modified.  Reading and digesting the Mortgagee Letters is critical for a thorough understanding of how the HECM program works and how it is changing.
• HECM Regulations are issued by HUD to implement amendments to the HECM statute enacted by Congress.
• 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

• AARP's Website 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 as the booklet "Reverse Mortgage Loans: Borrowing Against Your Home."
  Download Now

• Training Manual (April 2009): This is the training manual used in the 2-day, HUD-sponsored HECM counselor training offered through NeighborWorks America. It includes a wealth of information and references. The handouts with the answers to several training exercises are on a separate Handouts/Answers page.

• HECM Counselor Basic Training ONLINE - An online audio-visual version of the 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
  • HECM Property Repairs
  • Housing Options
  • State 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. Download Now

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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.)

1. 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 updated more often than the printed version, AARP's consumer guide, "Reverse Mortgage Loans: Borrowing Against Your Home".
2. Then review the comprehensive Training Manual that was developed by the AARP Foundation with HUD funding and is now used by NeighborWorks America to train HECM counselors.
3. 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.
4. 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. Always be sure to check for new mortgagee letters, as new policies announced in Mortgagee Letters may result in changes to exam questions.
5. 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.
6. 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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