Why are second appraisals required on some Home Equity Conversion Mortgages (HECM) and not on others that are similar?

FHA’s collateral risk assessment is a proprietary process that evaluates each HECM individually to determine if a second appraisal is required.

 

HQ Policy Determination

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: 2018-0031