PRESS RELEASE

Dallas - June 24, 2009 - Consumer Credit Counseling Service of Greater Dallas (CCCS of Greater Dallas), a nonprofit provider of financial education and a HUD-accredited counseling agency, is seeing a rise in consumers interested in reverse mortgages or Home Equity Conversion Mortgages (HECMs).

"Reverse mortgages can be an invaluable tool for seniors finding themselves short on retirement funds," said Todd Mark, vice president of education for CCCS of Greater Dallas. "As more consumers reach their retirement years with reduced savings or income, they are turning to reverse mortgages to tap the equity in their home and live out their golden years the way they had expected."

According to the National Reverse Mortgage Lenders Association (NRMLA), reverse mortgages are one of the few areas of growth in the mortgage industry. In Fiscal Year 2008, NRMLA reported 112,100 HECMs compared to 107,558 in Fiscal Year 2007. This number has tripled since 2005, when only 43,131 were reported.

During National Homeownership in June, CCCS of Greater Dallas is educating consumers on what they should know before considering a reverse mortgage. Some of this information includes:

Definition of a Reverse Mortgage Loan
A reverse mortgage is a loan against one's home that requires no repayment for as long as the homeowner resides there. It allows the homeowner to convert the equity in their home into tax-free income without having to sell the home, give up the title, or take on a new or additional monthly payment.

Eligibility and Qualifications
To be eligible for most reverse mortgages, the homeowner must be 62 years of age or older, have paid off all or most of the mortgage, and the home must be the owner's primary residence, which means they must live in the home more than six months out of the year. Homeowners are also required to see a HUD approved reverse mortgage counselor before becoming eligible for a reverse mortgage.

Expected Payment
In a reverse mortgage, instead of making payments to the lender each month, the lender makes payments to the homeowner. The amount you can borrow depends on the age of the owner, appraised value and location of the home, and current interest rates. The oldest borrowers generally receive the highest payment when living in homes of great value and when interest rates are low. The least cash generally goes to the youngest borrowers living in homes of lower value. Once the loan is taken out, borrowers can choose to receive their money in a lump sum, as a monthly cash advance, or as a line of credit that allows you to decide when and how much to use. One may also opt for a combination of these payment methods.

Income from a Reverse Mortgage Payment
The borrower can use the payment from a reverse mortgage however they choose. While many will use the money as additional income for basic living expenses, such as food and healthcare, the money can also be used to pay off existing debts, or for major purchases.

Paying Back the Reverse Mortgage
While the homeowner is responsible for continued maintenance and upkeep of the home, as well as taxes and insurance, no payments toward the reverse mortgage are required while occupying the home as their primary residence. The amount borrowed, the accrued interest, service fees and any other financed fees will be repaid upon the sale of the home or the homeowner passing away. If the homeowner passes, the home becomes the bank's property or those responsible for the estate can pay off the loan to keep ownership of the home.

How to know if a Reverse Mortgage is Right for You
Use caution when deciding to take out a reverse mortgage. A reverse mortgage can be an expensive way to borrow money and is not the best answer for all homeowners, especially those without an immediate need for additional income. The idea of the loan is that the homeowner is slowly selling the property or home back to the bank, leaving few options to the homeowner's heirs upon move-out or death. Family members can receive the equity that remains on the home, pay back the loan, or take out another mortgage to re-purchase the home.

"The average candidate for a reverse mortgage is someone with a regular need for additional funds, lives on a fixed income, relies on their home as their only asset and has no children or beneficiaries to leave the home to," Mark said. "There are new loan limits, as well as additional requirements for HECMs, and with the ever-changing economy, it's critical that consumers become educated on reverse mortgages."

For More Information
To learn more about reverse mortgages or schedule an introductory class to reverse mortgages for your organization, contact Linda Davis at 800-249-2227. Additional information can also be found at AARP - www.aarp.org/money/revmort/, The National Reverse Mortgage Lenders Association - http://www.reversemortgage.org and HUD - http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm.

About CCCS of Greater Dallas
Consumer Credit Counseling Service of Greater Dallas, Inc. is a nonprofit, community based credit and housing counseling and debt management service. Established in 1974, CCCS Dallas and its affiliate offices provide free financial education and counseling to consumers in-person, by phone, or Internet through their 24 locations in four states. CCCS Dallas is a HUD approved housing counselor and serves as one of 10 counseling agencies supporting the 888-995-HOPE Hotline. The agency is also a member of the National Foundation for Credit Counseling (NFCC), the nation's largest and longest serving national non-profit credit counseling network. To learn more about CCCS Dallas' free budget and credit counseling and education, or the agency's full range of service offerings, visit www.cccs.net.