Are there penalties if a Mortgagee forgets to notify HUD/FHA that they have uploaded their Home Equity Conversion Mortgage (HECM) appraisal in Electronic Appraisal Delvery (EAD) Portal and FHA Connection?

No penalties will be imposed on the Mortgagee.  However, for all HECM originations with case numbers assigned on or after October 1, 2018, FHA endorsement will not proceed until the collateral risk assessment has been conducted. If a second appraisal is required, the required steps have been taken in accordance with the applicable process stated in Mortgagee Letter 2018-06 and 2019-16.  
For additional information see Mortgagee Letter 2018-06 and 2019-06 available at:


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: 2018-0041