Will the Mortgagee or borrower be required to pay for FHA’s Home Equity Conversion Mortgage (HECM) collateral risk assessment?

No.  Neither the Mortgagee nor the borrower will be required to pay a fee for FHA’s collateral risk assessment.

For additional information see Mortgagee Letter 2018-06 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: 2018-0030