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Reverse mortgage question
Because California law requires a cooling-off period. Under California Civil Code section 1923.2, a lender can't accept a final and complete reverse mortgage application, or charge you any fees, until 7 days have passed since your counseling session. In practice, that means the 8th day after counseling is the earliest your full application can be accepted. The wait is there so nobody rushes you from counseling straight into a loan.
Short answer: California law makes you wait 7 days after counseling before a lender can take your final application or charge you a dime.
I get asked this almost every time someone in California finishes counseling. You just spent an hour or more with a counselor, you're ready to go, and now you're told to wait a week. It can feel like red tape. It isn't. It's there for you.
This rule is for homes in California. Other states have their own rules, and HUD's counseling rules apply everywhere for a HECM.
California Civil Code section 1923.2 says a lender can't "accept a final and complete application for a reverse mortgage loan from a prospective applicant" or "assess any fees upon a prospective applicant until the lapse of seven days from the date of counseling".
Your counseling is shown by a counseling certification, signed by you and the counselor, with the date of the session. That date starts the clock.
The rule applies to reverse mortgages on California homes, both HECMs and proprietary (jumbo) loans. It's in addition to HUD's own rule that you complete counseling before applying for a HECM. See Reverse Mortgage Counseling.
The 7 days have to pass completely. So the earliest a final and complete application can be accepted is the 8th day after counseling.
An example: if you finish counseling on a Monday, the next Monday is day 7. The earliest your final application can be accepted is Tuesday.
The wait doesn't freeze everything. Here's what lenders generally may and may not do in the meantime.
Generally allowed during the 7 days:
Generally not allowed until the 7 days pass:
Counseling covers a lot: how the loan works, what it costs, what happens to your spouse and heirs, and your ongoing obligations. With a reverse mortgage, there are no required monthly mortgage payments, but you must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.
That's a lot to take in at once. California decided that a week to think it over, without anyone holding your application or your money, is good protection. I agree with it. Our philosophy has always been that our clients shouldn't learn anything new during their counseling session, and the wait gives you room to make sure the decision is really yours.
Usually not. HUD counseling certificates are generally valid for 180 days, so a 7-day wait doesn't put yours at risk. Plan for it, and the loan moves along fine.
If you're buying a home with a HECM for Purchase, build the wait into your purchase contract timeline. Tell your real estate agent about it early.
Questions about your timeline? Call us at 530-888-6000.
ZYNG Mortgage, Inc., NMLS #76801. A reverse mortgage has no required monthly mortgage payments and uses your home's equity. Fees, mortgage insurance and other costs can be added to the loan balance, and the balance grows over time as interest is added, so your equity typically decreases. When the loan becomes due, the home may need to be sold, or the loan repaid from other funds. Interest is not tax-deductible until it is paid, in part or in full. You keep title to your home and must keep paying property taxes, homeowners insurance and upkeep, and meet the other loan terms; not doing so can make the loan due and could lead to foreclosure.
This material is not from HUD or FHA and was not approved by HUD or a government agency.
HECM count at the top of this page: HUD data through September 2026 (source, opens in a new tab).
