NRMLA was recently made aware that the North Carolina Commissioner of Banks posted an FAQ on its website indicating that telephone counseling is permissible under the state’s Reverse Mortgage Act.
The FAQ states:
Q. Is telephone counseling permissible under the reverse mortgage act?
A: Yes. Although HUD Guidelines recommend face-to-face meetings with potential reverse mortgage applicants to discuss their specific financial circumstances and to ensure that applicants understand their options, telephone counseling is permitted. Counselors must advise potential reverse mortgage applicants of the choice to have a face-to-face meeting or through another mutually agreed upon format such as the telephone. Counselors may also visit a reverse mortgage applicant’s home if the applicant is unable to travel to the participating agency’s office. Review the HUD Guidelines for more information.
The Banking Commissioner had previously stated that telephonic counseling could only be done if a borrower hardship existed, and was shown and documented.