ICFE eNEWS #08-17 - September 24th 2008
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ICFE introduces new Certified Home Equity Mortgage Conversion Specialist CHECMS' program - Accepted for 5 CEUs a/k/a Certified Reverse Mortgage Specialist Advisor

San Diego, CA - The growth of reverse mortgages has been explosive. America's seniors are getting bombarded with ads on TV, offers in their mailboxes and telephone calls all aimed at enticing them to determine their qualifications for a reverse mortgage. As the senior population continues to grow and there will be more professionals who will need to be trained and qualified to provide retirees and elderly homeowners with valuable guidance on whether or not a home equity conversion mortgage is right for their circumstances.

The HUD Home Equity Conversion Mortgage (HECM) and other reverse mortgage private programs are an essential financial tool for many seniors who want to accomplish compatible goals. These include staying in their own homes, not running out of money, not being a burden to their families, and leaving a legacy.

The ICFE Certified Home Equity Conversion Mortgage Specialist' (CHECMS') is a new training and certification curriculum developed by the ICFE. It is a comprehensive course with an independent study guide that has been specifically developed to help counselors learn and understand the purpose of the home equity mortgage conversion insurance law, how it has expanded over the last ten years and learn the details and characteristics of reverse mortgages.

Properly used, the HECM or reverse mortgage can mean the difference between enjoying the golden years and living with daily anxiety. It is highly important for the senior homeowners and their families to receive knowledgeable advice on the use of this financial tool, since it is not appropriate for everyone.

Professional advisers who successfully complete the ICFE CHECMS course will be prepared to work with seniors and their families in determining the best means of utilizing the HECM reverse mortgage program. It is notable the educational value of the ICFE's CHECMS course has been accredited by such prestigious governing bodies as AFCPE (etc.) for continuing education credit for their members.

Beyond the immediate usefulness of the course content, holders of ICFE certifications are better able to market their services and integrate them with other professional capabilities. Everyone in the process, including the seniors, homeowners, families, and the professionals themselves, benefits from this valuable course in the appropriate use of this versatile financial tool.

Participants will also learn about the law that created reverse mortgages and what it takes to be a HUD qualified lender. This new ICFE course takes the student through step-by-step process of originating a HECM and completing it to closing the loan and it even includes HUD servicing options. Enrollees will learn and develop the knowledge and skills needed to effectively comply with HUD regulatory procedures.
The ICFE's CHECMS(TM) course materials include the ISG (see table of contents below), a 100 question examination booklet and answer sheet, guidelines from the FTC on reverse mortgages and PowerPoint shows. It is available online. The CHECMS(TM) has been accepted for 15 continuing education units by a variety of professional organizations.

The CHECMS program will be ready for delivery on or about October 15th, 2008
View a SPECIAL prepublication discount and more information.

Independent Study Guide Table of Contents:

  • Chapter 1 Introduction to Reverse Mortgages

    • Background and History of Reverse Mortgages

    • HUD's Predominant Role in Home Equity Conversion Mortgages

    • Magnitude of Market

    • WHY Reverse Mortgages

    • Benefits & Caveats

    • Ethical Considerations

  • Chapter 2 The Homeowner/Borrower

    • Eligibility and Appropriateness Considerations

    • Myths and Facts

    • Important distinction must be made between "Eligible" and "Appropriate."

    • Not everyone who is eligible for HECM is also an appropriate user of this program.

    • Subchapter on how the HECM ends - Illustrative re Appropriateness

    • What happens when the homeowner no longer resides in the home.

  • Chapter 3 Reverse Mortgage Lenders

    • Who they are

    • HUD qualifications

    • Proprietary/Private Programs

  • Chapter 4 Payout Choices

    • Lump Sum, Monthly Payments, Line of Credit, Combination

    • Comments on Restrictions on Use of Proceeds

    • Elaboration of Appropriateness Standards

  • Chapter 5 Calculations of Payments

    • Factors: Age of youngest homeowner - Life Expectancy

    • Interest Rate- Fixed versus Floating

    • Existing Mortgage Debt

    • Maximum Loan - by County

    • COSTS - Including Total Annual Loan Cost (TALC)

  • Chapter 6 Mortgage Credit Analysis (Homeowner)

    • Factors - NOT Credit Report or Score

    • (Other than debt on certain federal programs)

    • Actuarial analysis - longer life expectancy + lower advance amount

    • The cost and value of the HUD guarantee

  • Chapter 7 Property Analysis

    • Reverse Mortgage as an Asset-based loan

    • Local Market Limitations and Conditions

    • Declining Market language in appraisals (2008 market conditions)

    • Expected market cycle - Expectation that it will recover during life of RM loan

  • Chapter 8 Application process

    • Step-by-Step Walk-through of what the Loan Originator needs to accomplish

    • Listing of forms, disclosures, preparation for homeowner counseling

    • Appendix with Forms

  • Chapter 9 Borrower Counseling - HUD Requirements

    • Counselor Requirements

    • Counseling Session Guidelines

    • Substance of Counseling Program

    • Appendix with Checklist

  • Chapter 10 Closing and Endorsement

    • Procedures

    • Document Checklist

    • Inclusion & Payment of Mortgage Insurance Premiums

    • Appendix with Forms

  • Chapter 11 HUD Role in Servicing & Assignments

    • Relationship between HUD and Lender

    • Practical Application of Servicing Practices

    • Appendix with Regulations

  • Chapter 12 Private/Proprietary Programs

    • Representative Lenders and Programs

    • Reasons for Using or Not Using non-HUD Reverse Mortgages General Appendix Federal

    • Authorizing Statutes Summary HUD Regulations News and Updates

End of table of contents.

About the ICFE:

The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation).  The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. 
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org).  CASDRAP disbanded in 2010, shortly after the web site project was completed.  In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.

The ICFE is also an on-line help for consumers who spend too much.  ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.

Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org.  Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G,  a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.

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