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HUD Updates Processes for HECM Borrower Payments

HUD Updates Processes for HECM Borrower Payments

The Federal Housing Administration today published Mortgagee Letter 2023-15 to improve FHA’s ability to make prompt payments in the event of a mortgagee default and to ensure that HECM borrowers receive scheduled or requested funds in a timely fashion.

ML 23-15:

  • Provides additional sources from which FHA can receive notice of a mortgagee’s anticipated or actual default on borrower payments; and
  • Requires mortgagees to provide FHA with borrower payment information when FHA determines the mortgagee is unable or unwilling to make the required borrower payments.

NRMLA submitted comments and recommended certain changes to the draft version of the mortgagee letter when it was posted on the Single-Family Drafting Table, some of which were incorporated into the final version of the ML.

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.