When a Home Equity Conversion Mortgage (HECM) is extinguished by sale or transfer after death or, if applicable, the end of a Deferral Period, a Mortgagee may file a HECM Claim Type 23 provided that the Mortgagee receives, in exchange for the extinguishment of such HECM, at least the lesser of:
- the mortgage balance; or
- ninety-five percent (95%) of the current appraised value of the property.
For more information see Mortgagee Letter 15-10 available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
Any questions may be directed to HUD’s National Servicing Center at (877) 622-8525. Persons with hearing or speech impairments may reach this number by calling the Federal Information Relay Service at (800) 877-8339.