What HECM servicing requirements, published in the HECM Final Rule, are highlighted in Mortgagee Letter 2017-11?

On January 19, 2017, FHA published the Final Rule, Strengthening the Home Equity Conversion Mortgage (HECM) Program. 
Mortgagee Letter 2017-11 highlights requirements specifically related to servicing functions published in the Final Rule which take effect for all case numbers assigned on or after September 19, 2017. 
 
The following HECM Servicing topics are highlighted in Mortgagee Letter 17-11:

  • Default for Unpaid Property Charges
  • Sale of Property Securing a Due and Payable HECM
  • Cash for Keys Incentive and Relocation
  • HERMIT System Updates

 
Mortgagee Letter 2017-11 is available at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
 
The Final Rule, Strengthening the Home Equity Conversion Mortgage (HECM) Program is available at: https://www.govinfo.gov/content/pkg/FR-2017-01-19/pdf/2017-01044.pdf 
 
The HERMIT User Guide is available at: https://www.hud.gov/program_offices/housing/comp/hecm_hermit


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-01271