Housing counselors are permitted to charge for reverse mortgage counseling, but the agency must tell you about the fee before charging it, and the fee has to be reasonable. Fees are typically about $125.  Counseling agencies are also required to waive the counseling fee if your income is less than twice the poverty level.

• TIP: Make sure your reverse mortgage counselor is approved by the U.S. Department of Urban Development (HUD).  You can find HUD-approved housing counselor by visiting HUD's counselor search page or calling HUD’s housing counselor referral line (1-800-569-4287).

• TIP:  If you are behind on your taxes and insurance and you are facing foreclosure, you can receive free reverse mortgage foreclosure prevention counseling. To find a specialist counselor, call one of the five national counseling agencies and ask for HECM foreclosure prevention counseling:

  • CredAbility: 1-888-395-2664
  • Money Management International: 1-866-765-3328
  • National Council on the Aging: 1-800-510-0301
  • National Foundation for Credit Counseling: 1-866-363-2227
  • NeighborWorks America: 1-888-990-4326

If you paid someone up-front for counseling and they never provided counseling to you, or if someone is offering you counseling only if you purchase an insurance or financial product along with your reverse mortgage, report the agency and counselor by filing a complaint with the CFPB, or calling 1-855-411-CFPB (2372).