Yes, borrowers that have an existing Home Equity Conversion Mortgage (HECM) loan may refinance into a new loan.
Refinance transactions will be subject to the fixed and adjustable interest rate policy changes defined in 24 CFR Part 206 and Mortgagee Letters (ML) 09-21,14-11 and 14-21.
For more detailed information see:
Mortgagee Letters 2014-21, 2014-11, and 2009-21 at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
Federal Register 24 CFR 206.27(b)(8) at: https://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title24/24cfr206_main_02.tpl