What is the collateral risk assessment for a Home Equity Conversion Mortgage (HECM)?

The collateral risk assessment is a proprietary process that FHA will use to ensure that risks to FHA are mitigated by the use of a second appraisal, when deemed necessary.  The process will be reviewed periodically and modified as needed.


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: 2018-0033