On April 30, 2015, FHA released Mortgagee Letter (ML) 2015-12 and FHA Info # 15-33, which rescinded ML 2015-03 and provided mortgagees with a 60-day extension to take first legal action on HECMs for non-borrowing spouses (NBS) whose loans were assigned FHA Case Numbers prior to August 4, 2014.
ML 2015-03 introduced the Mortgagee Optional Election (MOE) Assignment option–an alternative path to claim payment for mortgagees holding certain HECMs with eligible surviving NBS. ML 2015-12 rescinded that; the MOE Assignment option is no longer available to mortgagees; there is no more MOE.
Until HUD provides further guidance as to how servicers should handle HECMs with NBS whose loans were assigned FHA Case Numbers prior to August 4, 2014 (which further guidance HUD is expected to publish in the relatively near future), members should follow the instructions provided in FHA Info #15-33 as to how to request the above noted 60-day extension for eligible HECMs.
Download Mortgagee Letter 2015-12
Download FHA Info #15-33