Certified Home Equity Conversion

The HECM FHA insured reverse mortgage can be used by senior homeowners age 62 and older to convert the equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home. The loan, commonly known as HECM, is funded by a lending institution such as a mortgage lender, bank, credit union or savings and loan association. To assist the homeowner in making an informed decision of whether this program meets their needs, they are required to receive consumer education and counseling.

HECM counselors will discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM and provisions for the mortgage becoming due and payable. Upon the completion of HECM counseling, the homeowner should be able to make an independent, informed decision of whether this product will meet their needs.

Homeowners who meet the eligibility criteria can complete a reverse mortgage application by contacting a FHA-approved lending institution such as a bank, mortgage company, or savings and loan association.




New - January 2009 The National Reverse Mortgage Education Center (NRMEC) has reviewed the CHECMS course and exam and has found it to meet NRMEC's high professional standards. NRMEC recommends the CHECMS reverse mortgage program for any professional who works with senior adults. Introduction The United States Congress created reverse mortgages as part of the Housing and Community Development Act of 1987. It established the federal mortgage insurance program, which directed the department of Housing and Urban Development (HUD) to create Home Equity Conversion Mortgages (HECMs) also widely known as reverse mortgages. Reverse mortgage education for the consumer and professional is now coming to the forefront as more and more baby boomers move into retirement and begin to use their home equity as part of their retirement income. Even in its infancy, however, fraud and financial abuse became a major problem. HUD initiated various projects to educate senior homeowners about reverse mortgages. Likewise, a program regulations and oversight came into being with regards to reverse mortgage lenders and their representatives. The ICFE's Certified Home Equity Conversion Mortgage Specialist™ (CHECMS™) program is a comprehensive training and certification curriculum has been specifically developed to help professional counselors and interested others learn and understand the purpose of the HECM program and how it has expanded over the last ten years. Participants will also learn the characteristics of HECMs and what it takes to be a HUD qualified lender. This new course takes the student through step-by-step process of originating a HECM and completing it to closing the loan and it even includes HUD servicing options. Enrollees will learn and develop the knowledge and skills needed to effectively comply with HUD related HECMs. The CHECMS™ course is ideal for the financial services industry professionals who are dedicated to educating and assisting consumers, clients, customers, businesses, and the general public reverse mortgages. ICFE trained and certified professionals are employed by a wide range of organizations including, housing, senior, consumer credit and debt counseling organizations, credit unions and other financial institutions, cooperative extension system, all branches of the military, mortgage, real estate, and financial services firms. Many others are private practitioners including notary public, attorneys, security consultants, CPAs, CFPs, and consumer educators. The growth of reverse mortgages has been explosive. America's seniors are getting bombarded with ads on TV, offers in their mailboxes and telephone calls all aimed at enticing them to determine their qualifications for a reverse mortgage. As the senior population continues to grow and there will be more professionals who will need to be trained and qualified to provide retirees and elderly homeowners with valuable guidance on whether or not a home equity conversion mortgage is right for their circumstances.

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