Will FHA continue to perform a collateral risk assessment on Home Equity Conversion Mortgages (HECM) after September 30, 2019?

Yes.  FHA issued Mortgagee Letter 2019-16 which removed the September 30, 2018 sunset date.

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: 2018-0028