Is the servicer required to notify HUD of a HECM mortgagor's date of death?

The mortgagee is required to notify HUD when a mortgagor dies and the property is not the principal residence of at least one surviving mortgagor. Notice must be sent to HUD as soon as possible following the death, but no later than 60 days from the date of the mortgagor's death.

HUD expects mortgagees to exercise prudent servicing and reasonable diligence to ensure that occupancy is verified on an annual basis. The mortgagee must provide a written certification for the mortgagor's signature annually, and although written certification may be useful in determining the mortgagor's occupancy status, other supplemental measures may be needed to effectively determine date of death to meet the six (6) month requirement for first legal action. Mortgagees may consider subscribing to one of several commercial resources that offer a monthly match of loan files against Social Security database of death records.

Notification of the date of death applies to the "interest due date" on any subsequent claim submission.

HUD’s Servicing Contractor
Novad Management Consulting
Shepherd’s Mall
2401 NW 23rd Street, Suite 1A1
Oklahoma City, OK 73107

Toll-Free Telephone Number: (800) CALL FHA (225-5342)
Fax Number: (800) 489-1733

Borrower inquiries (HECM or Forward)
   customerservice@novadconsulting.com

HECM Servicer inquiries
   hecm.servicing@novadconsulting.com

Extensions and Variances Automated Requests System (EVARS) and E-Class assistance
   support@novadconsulting.com 

Payoff requests for Secretary-Held HECM mortgages:
   answers@hud.gov
   and
   hecm.payoffs@novadconsulting.com 

Mortgagee Letter (ML) 2003-22
   https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

HUD Handbook 4330.1 REV-5 Section 13-22
   https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh


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-02140