How do these changes impact borrowers currently in the process of getting a Home Equity Conversion Mortgage (HECM)?

The new policies are effective for case numbers issued on or after October 2, 2017.  If you are in the process of obtaining a Home Equity Conversion Mortgage (HECM) and have already completed HECM Housing Counseling and had a case number assigned to your loan application prior to October 2, 2017, the new policies will not affect you.  If you are applying for a HECM mortgage and have a case number on or after October 2, 2017,  your HECM mortgage will be originated according to the new HECM policies.

HQ Policy Determination

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-01487