NRMLA Seeks Clarification On New NBS Rules

NRMLA Seeks Clarification On New NBS Rules

In comments submitted to the Department of Housing and Urban Development this week, NRMLA requested that HUD update the HECM loan documents and security instrument to conform with non-borrowing spouse protections announced in Mortgagee Letter 2021-11.

NRMLA’s comments include proposed technical edits to these documents. In addition, servicers requested written confirmation from HUD that they can begin complying with the new changes before the loan documents are updated without endangering the insurance on the loans. ML 2021-11:

  • expands non-borrowing spouse protections to all HECM borrowers regardless of case number assignment date;
  • allows eligible NBS to continue living in the property in cases where the borrower has resided in a healthcare facility for more than 12 months; and
  • eliminates the requirement for an eligible NBS to establish marketable title or other legal rights to remain in the property following the death of the HECM borrower.

In its comments, NRMLA says, “It appears that if a borrower were to return to his or home (the Property) after such an extended stay in a health care facility, the loan should be “reinstated” and not considered to be under a deferral period. We ask that FHA clarify and confirm this point.” To read the full letter, login to the comment letters section of

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Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.