FHA Issues Mortgagee Letter 2017-11: Implementation of HUD’s January 2017 Home Equity Conversion Mortgage (HECM) Final Rule

FHA issued Mortgagee Letter 2017-11 (Mortgagee Letter), which serves as a consolidated directive for lenders and servicers required to implement certain servicing policy changes contained in the HECM final rule published on January 19, 2017. Specifically, the Mortgagee Letter provides more detail on the following 3 areas of servicing policy included in the HECM final rule: default for unpaid property charges; sale of properties securing a due and payable HECM; and Cash for Keys incentives or other relocation incentives. The HECM final rule’s servicing requirements, including the additional guidance contained the Mortgagee Letter, will take effect for all FHA case numbers assigned on or after September 19, 2017.

Click here to view the FHA Mortgagee Letter