Do timeframes referenced in Section 2.15 of the HECM Financial Assessment and Property Charge Guide apply to other credit items such as collections?

Credit history categories referenced in the HECM Financial Assessment and Property Charge Guide in section 2.17-2.25 do not have specific time frame requirements (with the exception of section 2.19 - Disputed Derogatory Accounts). However these credit history categories represent eligibility issues. Mortgagees must follow policy in those sections to address any items that appear on record regardless of timeframe.

For additional information see Mortgagee Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Sections 2.17 through 2.25 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: KA-01267