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FHA Proposes Update to HECM Assignment Claims Eligibility

FHA Proposes Update to HECM Assignment Claims Eligibility

The Federal Housing Administration posted a new draft mortgagee letter to the Drafting Table that would expand the assignment eligibility criteria to include HECMs that are due and payable resulting from the death of all borrowers and non-borrowing spouses.

Servicers no longer will have responsibility for servicing these loans and can receive claim payments upon assignment of these mortgages

  • What they’re saying: FHA says this change will support servicer liquidity and strengthen the HECM market for senior homeowners who use a HECM to age in place.

What’s Next: Interested stakeholders are encouraged to thoroughly review the draft ML and provide their feedback through December 11, 2023. Instructions for viewing the draft ML and providing feedback are available on the Drafting Table.

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.