San Diego, CA - 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.
The HUD Home Equity Conversion Mortgage (HECM) and other reverse mortgage private programs are an essential financial tool for many seniors who want to accomplish compatible goals. These include staying in their own homes, not running out of money, not being a burden to their families, and leaving a legacy.
The ICFE Certified Home Equity Conversion Mortgage Specialist (CHECMS ) is a new training and certification curriculum developed by the ICFE. It is a comprehensive course with an independent study guide that has been specifically developed to help counselors learn and understand the purpose of the home equity mortgage conversion insurance law, how it has expanded over the last ten years and learn the details and characteristics of reverse mortgages.
Properly used, the HECM or reverse mortgage can mean the difference between enjoying the golden years and living with daily anxiety. It is highly important for the senior homeowners and their families to receive knowledgeable advice on the use of this financial tool, since it is not appropriate for everyone.
Professional advisers who successfully complete the ICFE CHECMS course will be prepared to work with seniors and their families in determining the best means of utilizing the HECM reverse mortgage program. It is notable the educational value of the ICFE's CHECMS course has been accredited by such prestigious governing bodies as AFCPE (etc.) for continuing education credit for their members.
Beyond the immediate usefulness of the course content, holders of ICFE certifications are better able to market their services and integrate them with other professional capabilities. Everyone in the process, including the seniors, homeowners, families, and the professionals themselves, benefits from this valuable course in the appropriate use of this versatile financial tool.
Participants will also learn about the law that created reverse mortgages and what it takes to be a HUD qualified lender. This new ICFE 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 regulatory procedures.
The ICFE's CHECMS™ course materials include the ISG (see table of contents below), a 100 question examination booklet and answer sheet, guidelines from the FTC on reverse mortgages and PowerPoint shows. It is available online. The CHECMS™ has been accepted for 15 continuing education units by a variety of professional organizations.
The CHECMS program will be ready for delivery on or about
October 15th, 2008
View a SPECIAL prepublication discount and more information.
CHECMS
Independent Study Guide Table of Contents:
Chapter 1 Introduction to Reverse Mortgages
Background and History of Reverse Mortgages
HUD's Predominant Role in Home Equity Conversion Mortgages
Magnitude of Market
WHY Reverse Mortgages
Benefits & Caveats
Ethical Considerations
Chapter 2 The Homeowner/Borrower
Eligibility and Appropriateness Considerations
Myths and Facts
Important distinction must be made between "Eligible" and "Appropriate."
Not everyone who is eligible for HECM is also an appropriate user of this program.
Subchapter on how the HECM ends - Illustrative re Appropriateness
What happens when the homeowner no longer resides in the home.
Who they are
HUD qualifications
Proprietary/Private Programs
Lump Sum, Monthly Payments, Line of Credit, Combination
Comments on Restrictions on Use of Proceeds
Elaboration of Appropriateness Standards
Chapter 5 Calculations of Payments
Factors: Age of youngest homeowner - Life Expectancy
Interest Rate- Fixed versus Floating
Existing Mortgage Debt
Maximum Loan - by County
COSTS - Including Total Annual Loan Cost (TALC)
Chapter 6 Mortgage Credit Analysis (Homeowner)
Factors - NOT Credit Report or Score
(Other than debt on certain federal programs)
Actuarial analysis - longer life expectancy + lower advance amount
The cost and value of the HUD guarantee
Chapter 7 Property Analysis
Reverse Mortgage as an Asset-based loan
Local Market Limitations and Conditions
Declining Market language in appraisals (2008 market conditions)
Expected market cycle - Expectation that it will recover during life of RM loan
Chapter 8 Application Process
Step-by-Step Walk-through of what the Loan Originator needs to accomplish
Listing of forms, disclosures, preparation for homeowner counseling
Appendix with Forms
Chapter 9 Borrower Counseling - HUD Requirements
Counselor Requirements
Counseling Session Guidelines
Substance of Counseling Program
Appendix with Checklist
Chapter 10 Closing and Endorsement
Procedures
Document Checklist
Inclusion & Payment of Mortgage Insurance Premiums
Appendix with Forms
Chapter 11 HUD Role in Servicing & Assignments
Relationship between HUD and Lender
Practical Application of Servicing Practices
Appendix with Regulations
Chapter 12 Private/Proprietary Programs
Representative Lenders and Programs
Reasons for Using or Not Using non-HUD Reverse Mortgages General Appendix Federal
Authorizing Statutes Summary HUD Regulations News and Updates
End of table of contents.