Home Equity Conversion Mortgage [HECM] Counselor [HUD] Law and Legal Definition

Pursuant to 24 CFR 206.3 [Title 24 Housing and Urban Development; Subtitle B Regulations Relating to Housing and Urban Development; Chapter II Office of Assistant Secretary for Housing Federal Housing Commissioner, Department of Housing and Urban Development; Subchapter B Mortgage and Loan Insurance Programs under National Housing Act and Other Authorities; Part 206 Home Equity Conversion Mortgage Insurance; Subpart A General], the term Home Equity Conversion Mortgage (HECM) Counselor means “an individual who provides statutorily required counseling to clients who may be eligible for or interested in obtaining an FHA-insured HECM. This counseling assists elderly homeowners who seek to convert equity in their homes into income that can be used to pay for home improvements, medical costs, living expenses, or other expenses.”