What is a characteristic of mandatory counseling for reverse mortgages?

Mandatory counseling for reverse mortgages is designed to ensure that borrowers fully understand their financial responsibilities associated with this type of loan. Reverse mortgages can be complex financial products, and the counseling is a critical step in helping borrowers grasp the implications, costs, and obligations involved. The counseling sessions typically cover important topics such as how the loan works, potential alternatives, and the impact on heirs and property ownership. This understanding is crucial in helping borrowers make informed decisions that affect their long-term financial health.

The other options do not align with the characteristics of mandatory counseling. Counseling is not optional for younger borrowers, as it is a required step for everyone considering a reverse mortgage, regardless of age. Additionally, while income verification is not a standard requirement for reverse mortgages, mandatory counseling does not eliminate the need for it; rather, it serves a different purpose. Lastly, having equity in the home does not exempt borrowers from the counseling requirement; it remains a necessary step for all potential reverse mortgage applicants.