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HUD Rescinds Three MLs That Impact HECM

HUD Rescinds Three MLs That Impact HECM

On June 27, the Department of Housing and Urban Development published five mortgagee letters that rescinded policies in its Single Family mortgage insurance program, spanning the origination process from loan application through endorsement.

Three of these MLs affect the HECM program:

  • Mortgagee Letter 2025-16 rescinds the full-time employment requirement for Direct Endorsement (DE) underwriter eligibility to allow part-time employment with an FHA-approved mortgagee.
  • Mortgagee Letter 2025-17 rescinds ML 2024-20, which required that the lowest floor in newly constructed properties located within a one-percent-annual-chance (100-year) floodplain be built at least two feet above the Base Flood Elevation (BFE).
  • Mortgagee Letter 2025-18 eliminates procedural steps an FHA appraiser must complete during each assignment, better aligning FHA with industry standards.

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.