What is considered “Due and Payable” for a HECM with a Case Number assigned before August 4, 2014?

A Home Equity Conversion Mortgage (HECM) with a Case Number assigned before August 4, 2014, is considered due and payable without HUD’s approval if:

  • a borrower died and the property is no longer the principal residence of at least one surviving borrower; or
  • a borrower conveyed all of their title in the mortgaged property and no other borrower retains title to the property 

A HECM with a Case Number assigned before August 4, 2014, is considered due and payable with HUD’s approval, if one of the following conditions applies:

  • no surviving borrower maintains the property as their principal residence;
  • a borrower fails to occupy the property for a period of more than twelve consecutive months because of physical or mental illness, and the property is not the principal residence of at least one other borrower; or
  • an obligation of the borrower under the HECM is not fulfilled.

For more information see Mortgagee Letter 15-10 available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
 
Any additional questions may be directed to the FHA Resource Center at Toll-Free (800) CALLFHA (225-5342) or by email to answers@hud.gov. Persons with hearing or speech impairments may reach this number by calling the Federal Information 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-02410