HUD

HUD

The National Council on Aging (NCOA) has voiced its opposition to the proposed elimination of the entire $88 million in funding for the Housing Counseling Program run by the U.S. Department of Housing and Urban Development, which includes reverse mortgage counseling. The funding cut is part of the Fiscal Year 2011 Continuing Appropriations Act (H.R.1473).

The NCOA notes that applicants for Federal Housing Administration-insured reverse mortgages - which represent 95% of the market - must go through HUD-approved reverse-mortgage counseling. The NCOA states that loss of the counseling funding will impact its counselors' ability to help reverse-mortgage borrowers who are in default and at risk of foreclosure.

"This unique counseling helps older homeowners understand the costs, benefits and risks associated with these loans," says Barbara Stucki, vice president for home equity initiatives at NCOA. "Without this funding, the older Americans who can least afford it may have to pay for this critical advice out-of-pocket."

NCOA has urged Congress and the administration to restore funding for the program in the upcoming fiscal year 2012 budget discussions.

HUD