Reverse Mortgage Counseling Cost: What the HUD Session Costs and Who Qualifies for a Waiver

HUD sets no fixed price for reverse mortgage counseling. Each HUD-approved agency sets its own reasonable fee and must disclose it at intake, and a borrower with income below 200% of the federal poverty level pays nothing at the session, though the agency may collect the fee at closing (HUD Mortgagee Letter 2011-09). The fee goes to the counseling agency, not the lender, and no client may be turned away because of an inability to pay (HUD Mortgagee Letter 2011-09). Every HECM borrower must receive the counseling (24 CFR §206.41).

Last reviewed 2026-10-12

This guide covers only the cost of the counseling session: how the fee is set, why it exists, who pays nothing at the session, and when it is collected. The session's content and how to find a counselor are covered in the reverse mortgage counseling guide; the full closing-cost picture is in the reverse mortgage closing costs guide.

How much does reverse mortgage counseling cost?

HUD does not set a price. In 2008 HUD treated $125 per session as a reasonable and customary fee; in 2011 it said agencies may charge more than $125 and may set their own fee structure, as long as the fee is reasonable and customary, matches the services provided, and does not pay again for work already funded by HUD counseling grants (HUD Mortgagee Letter 2011-09). Ask for the fee when you call; the agency must tell you at intake. The session itself lasts at least 60 minutes (HUD Handbook 7610.1), and an agency may count intake, the information packet, and follow-up when it sets its cost (HUD Mortgagee Letter 2011-09).

The fee is tied to the counseling service, not to the loan. HUD requires it to match the services provided and not to create a financial hardship, and an agency that charges must have procedures to judge each client's ability to pay from income, debts, and other expenses (HUD Mortgagee Letter 2011-09).

Why is there a counseling fee at all?

The counseling requirement is a federal consumer protection: an independent, HUD-regulated counselor walks the borrower through the loan before any lender salesperson does. HUD-approved Housing Counseling Agencies are nonprofits or public agencies that must cover the cost of delivering certified counseling, and the borrower fee helps fund that work alongside HUD grants. The National Housing Act requires the counselor to be an independent third party that is not associated with or compensated by anyone originating, servicing, or funding the loan (12 USC §1715z-20(d)(2)(B)), which is why the borrower, not the lender, bears the fee. If lenders paid for counseling directly, the independence the requirement is meant to guarantee would erode.

When is the counseling fee waived?

HUD requires that no client be turned away because of an inability to pay (HUD Mortgagee Letter 2011-09). For a client whose income is below 200% of the federal poverty level, an agency that charges fees should not collect one at the counseling session. It may charge the fee at closing, but only if it told the client the amount during the session, and the client must bring proof of income such as Social Security payment stubs or the prior year's tax return (HUD Mortgagee Letter 2011-09). Agencies must disclose their fee structure at intake, so ask about the fee when you call.

This matters because the borrowers most likely to weigh a reverse mortgage out of financial need are the ones the rule protects at the session itself.

What are the ways to pay for counseling?

HUD's guidance names two points at which an agency can collect its fee (HUD Mortgagee Letter 2011-09):

• At the session. The agency collects the fee it disclosed at intake.
• At closing. For a client whose income is below 200% of the federal poverty level, the agency collects nothing at the session and may charge the fee at loan closing, if it told the client the amount during the session. Costs paid at closing can come out of the loan proceeds instead of cash (CFPB).

Either way, an agency cannot charge you a fee you can't afford (CFPB).

How does the counseling fee fit the total cost picture?

The two largest HECM closing costs are federal: the 2% upfront FHA mortgage insurance premium (HUD Mortgagee Letter 2017-12) and the origination fee, which HUD caps by formula at $6,000 (24 CFR §206.31). The counseling fee is worth understanding because the session is mandatory (24 CFR §206.41) and the fee is set by the agency, not by the lender you choose. The full breakdown of every cost, with the rule behind each, is in the reverse mortgage closing costs guide.

To see how the counseling fee and the larger costs net out against a specific home value, run the figure in the reverse mortgage calculator.

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