HUD Publishes Guidance for Originating/Servicing Loans in Disaster Areas

HUD Publishes Guidance for Originating/Servicing Loans in Disaster Areas

In the wake of the devastating wildfires in Maui, HI, the Federal Housing Administration published FHA Info #2023-67 as a reminder to mortgagees about its guidance for originating and/or servicing FHA-insured forward mortgages and Home Equity Conversion Mortgages in locations where the President has declared a major disaster area.

“Mortgagees are reminded to contact affected borrowers who may require loss mitigation assistance as soon as possible post-disaster and FHA encourages mortgagees to use any permissible means to contact borrowers to provide them with needed forbearance relief,” says FHA Info #2023-67.

For existing HECMs, FHA Info #2023-67 says:

  • HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse are subject to a 90-day extension of HECM foreclosure timelines; and
  • FHA provides HECM mortgagees an automatic 90-day extension from the date of the Presidentially-Declared Major Disaster Area (PDMDA) foreclosure extension expiration date to commence or recommence a foreclosure action.

All properties with pending mortgages or endorsements in PDMDA areas must have a damage inspection report that identifies and quantifies any dwelling damage.

If you’re contacted by a former client who needs assistance, please have them contact their servicer immediately. The Consumer Financial Protection Bureau has also created a useful resource guide that helps explain the obligations of a reverse mortgage borrower while recovering from a natural disaster. Download a copy from

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.