The Federal Housing Administration posted the draft Home Equity Conversion Mortgage (HECM) Origination through Servicing sections of its Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) for stakeholder review and feedback. The draft sections contain FHA’s proposed comprehensive consolidation of HECM requirements, incorporating approximately 150 Mortgagee Letters and other policy documents that are currently used by mortgagees when originating or servicing HECMs. The draft sections posted today on the Single Family Housing Drafting Table (Drafting Table) are available for industry feedback through Monday, November 15, 2021.
This posting is a continuation of FHA’s progress toward a consolidated, authoritative Handbook 4000.1 that will make it easier to do business with FHA. When the final version is eventually published, the HECM Origination through Servicing sections will provide mortgagees, servicers, appraisers, and other stakeholders with a comprehensive policy resource, and replace existing HECM guidance on:
- Origination through Post-Closing and Endorsement;
- Appraiser and Property Requirements;
- Servicing and Loss Mitigation; and,
- Glossary and Acronyms.
Similar to other Handbook 4000.1 sections posted for feedback, the draft HECM Origination through Servicing sections contain revisions to policy language for improved clarity and consistency, proposed new policy, and to conform to the Handbook 4000.1 organizational structure.
These draft sections do not contain policies for HECM non-assignment claims; however, those non-assignment claim sections will be posted for feedback at a future date.
Review and Feedback
To facilitate FHA’s review and analysis of feedback, interested stakeholders are strongly encouraged to thoroughly review the content of the draft sections and submit feedback during the 45-calendar day period from Wednesday, September 29, 2021, through Monday, November 15, 2021. Instructions for viewing the draft sections and providing feedback are available on the Drafting Table. FHA will carefully consider all feedback received.