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When must HUD-approved counseling be completed in the HECM reverse mortgage process?

General Mortgage Knowledge · 20% of the SAFE exammedium

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Correct answer: Before the loan application is submitted — the counseling certificate is required at application

Mandatory HUD counseling must be completed BEFORE the HECM application can proceed. The borrower receives a counseling certificate from an independent HUD-approved counselor, and this certificate must be provided to the lender at application. The counselor covers how the loan works, costs, obligations, alternative options, and repayment triggers. This is non-negotiable — no certificate, no application. It ensures borrowers fully understand the significant financial commitment of a reverse mortgage.

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