NRMLA and NCHEC

When deciding on a lender to provide you with a reverse mortgage, one of the most important factors to consider, besides solely dollar figures, is whether the lender is a member of NRMLA (the National Reverse Mortgage Lenders Association). It is a wise idea to select a lender that belongs to this organization. Member lending organizations must adhere to a Code of Conduct, and pledge to operate by fair, ethical, and respectful practices.

NRMLA is a trade association designed to support the concept of reverse mortgages, and to educate lenders as well as consumers about how these loans can be used.

The National Center for Home Equity Conversion (NCHEC), on the other hand, is not a trade organization, but a non-profit entity that disseminates information about reverse mortgages, publishes a set of standards for lenders, and certifies reverse mortgage counselors. Most reverse mortgages require you to attend a counseling session, during which you learn more about the details of a reverse mortgage.

A NCHEC-certified counselor cannot be affiliated with a specific lender; and as such they remain independent and unbiased. The counselor has a piece of software that they will use to compare the terms of various reverse mortgage products that are available to you, and find out which one best suits your individual needs.

Although NCHEC counselors are unbiased, the organization does certify lenders who pledge to abide by a set of rules and ethical standards, which include disclosing all of your options, respecting your decisions, and protecting your privacy.

By attending a session with a NCHEC-certified counselor, you can help protect yourself against predatory lenders, scams, and rip-offs, since these counselors are not affiliated with any specific program, and are there to serve as advocates for your benefit.