The Department of Housing and Urban Development recently published FHA Info #23-69 to clarify policies related to the late payment of HECM mortgage insurance premiums and payments made to HECM borrowers in the event of a mortgagee default.
FHA reminds stakeholders that monthly MIP is due to FHA on the first business day of the month and can be remitted through the Home Equity Reverse Mortgage Information Technology (HERMIT) system. Late payments will incur a penalty and interest on late payments.
FHA Info #23-69 also includes FAQs that address questions regarding Mortgagee Letter 2023-15, which FHA published in July to improve FHA’s ability to make prompt payments to HECM borrowers when a mortgagee is unable to.
If a mortgagee cannot make borrower payments, they should immediately email email@example.com. “FHA will ensure that any borrower payments that are not made by the mortgagee are paid to the borrower. FHA’s payment of any amounts due to the borrower does not alleviate the mortgagee’s default for failure to make the payments when due. FHA will require the mortgagee to take steps to cure its default, consistent with ML 2023-15 and 24 CFR 206.121.