The Federal Housing Administration issued two temporary partial waivers to its HECM servicing policies that allow mortgagees to be more flexible in submitting assignment claims. Details were provided in FHA INFO #20-80 and summarized below.
Waiver of Borrower Signature Requirement
This temporary partial waiver from Mortgagee Letter (ML) 2017-05 allows mortgagees to submit an assignment claim without having to obtain a signature from the HECM borrower on an occupancy certification. Mortgagees are required, however, to continue to obtain annual occupancy certifications from HECM borrowers. This temporary waiver is effective through December 31, 2020.
Waiver of Maximum Arrearage for Subsequent HECM Property Charge Repayment Plan
FHA also issued a temporary partial waiver of a policy first introduced in ML 2015-11. The partial waiver builds on the previous HECM COVID-19 repayment waiver, dated April 14, 2020, that expired on October 30, 2020. It gives mortgagees authority to offer HECM borrowers a repayment plan for unpaid property charges — regardless of the total outstanding arrearage — by waiving certain requirements outlined in ML 2015-11 and allowing them to repay property tax arrearages of any amount if they are unable to make two consecutive payments during the COVID-19 National Emergency. This temporary partial waiver is also effective through December 31, 2020.