NRMLA Urges Congress to Restore Counseling Funds

The reverse mortgage trade group asked lawmakers to restore HUD housing counseling funding that supports mandatory borrower counseling for federally insured loans.

Updated on Nov. 6, 2026 in Residential

NRMLA Urges Congress to Restore Counseling Funds

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The National Reverse Mortgage Lenders Association asked Congress to restore funding for HUD housing counseling in a letter dated November 6, 2026. The group says the funding supports independent counseling that every prospective HECM borrower must receive before a loan can close.

Why it matters

Federal counseling is a statutory requirement under Section 255 of the National Housing Act, and borrowers cannot close a HECM loan without a certificate from a HUD-approved counselor. Without appropriations, the group warns that counseling could become less accessible and affordable for seniors nationwide.

NRMLA represents more than 300 member companies and more than 2,000 member delegates, and its members originate more than 90% of reverse mortgages. The extraction does not say whether Congress will restore the requested funding.

The players

National Reverse Mortgage Lenders Association

The NRMLA is a trade association representing reverse mortgage lenders and originators that advocates for the federally insured HECM program.

The details

Under Section 255 of the National Housing Act, borrowers must receive counseling from a HUD-approved agency before a HECM loan can close. Lenders are barred from paying for counseling, directing borrowers to a particular agency, or using an affiliated counseling provider.

November 6, 2026: NRMLA sent its letter urging Congress to restore HUD counseling funds.

Program Context

Section 255 of the National Housing Act requires HUD-approved counseling before any HECM reverse mortgage can close. The NRMLA letter places the current funding request within that statutory framework for federally insured reverse mortgages.

Seniors considering a HECM reverse mortgage must complete counseling from a HUD-approved agency before closing. If counseling funding is cut, that step could become harder to access or more costly for borrowers without alternatives.

The takeaway

Borrowers considering a reverse mortgage should confirm that they have access to a HUD-approved counselor before moving forward, since the loan cannot close without that certificate. Lawmakers' decisions on counseling funding will shape how easily seniors can complete that required step.