How should HECM loans on a valid repayment plan for tax and/or insurance defaults located in a Presidentially Declared Major Disaster Area (PDMDA) be handled if the disaster event has caused an interruption to that repayment plan?

The borrower should be re-evaluated for a subsequent repayment plan in accordance with Mortgage Letter 2015-11 and Mortgagee Letter 2016-07.

Mortgagee Letters are available at:

Any questions may be directed to the FHA Resource Center at Toll-Free Telephone Number (800) CALLFHA (225-5342) or by email to .   Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339.

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-01370