Will a second appraisal be required on any Home Equity Conversion Mortgages (HECM) case numbers assigned prior to October 1, 2018?

No.  FHA will not require the Mortgagee to order a second appraisal under the collateral risk assessment process outlined in Mortgagee Letter 2018-06 if the HECM case number was assigned prior to October 1, 2018.

For additional information see Mortgagee Letters 2018-06 and 2019-16 available at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: 2018-0026