FHA Extends HECM Loss Mitigation Waivers

FHA Extends HECM Loss Mitigation Waivers

To continue assisting HECM borrowers financially impacted by the COVID-19 pandemic, the Federal Housing Administration extended two partial waivers connected to its HECM loss mitigation policies through December 31, 2023.

  • The temporary partial waiver of Mortgagee Letter 2015-11  allows mortgagees to offer repayment plans to HECM borrowers with unpaid property charges regardless of their total outstanding arrearage; and
  • The temporary partial waiver of Mortgagee Letter 2016-07 permits mortgagees to seek assignment of a HECM immediately after using their own funds to pay unpaid property taxes and insurance on or after March 1, 2020, by temporarily eliminating the three-year waiting period for such assignments.

Gail Balettie, Senior Vice President, Client Satisfaction at Celink and co-chair of NRMLA’s Servicing Committee, commented, “Celink applauds HUD’s decision to extend these waivers to the end of next year, which is in alignment with recent recommendations made by NRMLA on behalf of the industry to improve loss mitigation options for HECM borrowers.”

Published by

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.