Comprehensive 2026 guide covering 2 key costs and fees rules for California reverse mortgage borrowers. Based on HUD HECM guidelines, FHA regulations, and California state law. Reverse Mortgage California (NMLS# 2530594).
# Prohibited Fees: A Costs And Fees Guide for California Seniors (2026)
Last updated: 2026 | Source: HUD HECM Handbook 4235.1, FHA program rules, California Civil Code | Author: George Kfoury, NMLS# 365129
If you’re a California homeowner aged 62 or older considering a reverse mortgage, this guide answers the core questions about costs and fees. All information is current as of 2026 and based on official HUD, FHA, and California regulatory sources.
Disclosure:** Reverse Mortgage California is a licensed California mortgage broker (NMLS# 2530594) specializing in HECM (Home Equity Conversion Mortgage) and proprietary reverse mortgage products. The HECM program is FHA-insured and regulated by the U.S. Department of Housing and Urban Development. Mandatory HUD-approved counseling is required for all borrowers.
Table of Contents
Introduction
The reverse mortgage program — formally known as the Home Equity Conversion Mortgage (HECM) — is a federal lending product that allows homeowners aged 62 or older to convert home equity into cash without monthly mortgage payments. As of 2026, the FHA HECM lending limit is $1,209,750.
For California homeowners, several state-specific rules layer on top of federal HUD requirements, including a mandatory 7-day cooling-off period and additional disclosure requirements under the California Reverse Mortgage Act.
This guide covers 2 specific topics within costs and fees, each based on the official source material and applicable to California borrowers as of 2026.
1. Can a HECM lender charge a processing fee?
Answer: Lenders cannot charge HECM borrowers processing fees.
**Source:** HECM_Underwriting_Manual.pdf, Not Allowable, page 57, current as of 2026.
How this looks in practice
A California homeowner can use this rule to understand whether their reverse mortgage file is likely to need extra documentation before approval.
2. Can a HECM lender charge an underwriting fee?
Answer: Lenders cannot charge HECM borrowers underwriting fees.
**Source:** HECM_Underwriting_Manual.pdf, Not Allowable, page 57, current as of 2026.
How this looks in practice
A California homeowner can use this rule to understand whether their reverse mortgage file is likely to need extra documentation before approval.
Frequently Asked Questions
- Can a HECM lender charge a processing fee?
- Lenders cannot charge HECM borrowers processing fees.
- Can a HECM lender charge an underwriting fee?
- Lenders cannot charge HECM borrowers underwriting fees.
About This Guide
This guide is published by Reverse Mortgage California (NMLS# 2530594), a California-licensed reverse mortgage broker. The information is current as of 2026 and based on:
About the author: George Kfoury (NMLS# 365129) is a licensed reverse mortgage specialist serving California homeowners. For a free, no-obligation consultation specific to your situation:
📞 **Phone:** (909) 642-8258
🌐 **Website:** reversemortgagecali.com
Compliance note: This guide is for educational purposes only. Individual situations vary, and some statements depend on factors that should be reviewed with a HUD-approved counselor or a licensed financial advisor. Reverse Mortgage California does not guarantee outcomes; all loan approvals are subject to underwriting and program requirements.
**Last updated:** 2026