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.