Weekly Report has added a new feature called the “Servicing Corner,” so that we can better educate our readers on the most commonly asked questions that loan officers ask about HECM servicing guidelines. Our first question focuses on the occupancy certification.
Question: Must the borrower(s) sign their annual occupancy form?
Answer: YES! HUD requires us to provide proof every year from the borrower that they occupy the home. On the anniversary date that the loan was closed, the servicer mails an annual occupancy certification. The form is very simple. It states the guidelines and asks them to acknowledge that they are still residing in the home as a primary residence. The servicer will ask the borrower to complete the form with their current phone number and email address, if they have one, and whether their next of alternate contact has changed. Servicers may vary what they ask on the forms, but basically, the borrower must sign and acknowledge that they occupy the property.
-Tera Guy, James B. Nutter & Company
If you have a question that you would like answered in a future issue, please email Darryl Hicks, at firstname.lastname@example.org.