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c. Individuals Required to Receive HECM Counseling (04/29/2024)
i. Definitions
Non-Borrowing Spouse (NBS) refers to the spouse of a HECM Borrower who is also not a Borrower.
Eligible Non-Borrowing Spouse (Eligible NBS) refers to an NBS who meets all Qualifying Attributes for a Deferral Period.
Non-Borrowing Owner refers to someone who is:
• not a Borrower;
• not the spouse of a Borrower; and
• on the title as an owner to the Property that will serve as collateral for the HECM.
ii. Standard
The Mortgagee must ensure all Borrowers, NBSs, and Non-Borrowing Owners, with legal competency, have received HECM counseling from a counselor on the HECM Roster before processing the loan application or obtaining an FHA case number.
The Mortgagee must ensure HECM counseling is completed by an agent or attorney-in- fact that holds a durable Power of Attorney (POA) if they execute the RLARM or closing documents on behalf of a legally competent Borrower or Eligible NBS.
For any Borrower, NBS, or Non-Borrowing Owner lacking legal competency, HECM counseling must be completed by:
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages
1. Origination/Counseling Requirements
• the person holding a POA; or
• a court-appointed conservator or guardian.
For additional information on HECM Counseling for individuals with a Living Trust or Life Estate see Eligibility Requirements for Property Held in Living Trusts and Eligibility Requirements for Borrowers Holding Only Life Estates.
For additional information on HECM Counseling see HUD Handbook 7610.1.