The Department of Housing and Urban Development published Mortgagee Letter 2017-11 today to further clarify new servicing requirements in the HECM Final Rule that become effective for all case numbers assigned on or after September 19, 2017.
Specifically, this Mortgagee Letter provides more detail on the following three areas of servicing policy included in the HECM final rule:
- Default for Unpaid Property Charges;
- Sale of Property Securing a Due and Payable HECM; and
- Cash for Keys Incentive and Relocation Incentive.
In a rare move, HUD invited public comments for a period of 30 calendar days from the date of issuance. NRMLA’s Servicing Committee convened today and has formed a working group to review and assess the requirements in Mortgagee Letter 2017-11 and formulate comments. Stay tuned for further updates.