Mortgagees throughout ongoing Home Equity Conversion Mortgage (HECM) servicing must keep copies of the following HECM Borrower and Non-Borrowing HECM Spouse certifications in their servicing files.
Annual Borrower Certification:
Borrowers that identify themselves as being married with a currently Eligible Non-Borrowing Spouse must submit the Borrower Certification: Eligible Non-Borrowing Spouse each year.
Death of Last Surviving Borrower Certification:
Upon the death of the last surviving borrower, the Mortgagee must obtain the Eligible Non-Borrowing Spouse certification from any Eligible Non-Borrowing Spouse within 30 days of receiving notice of the last surviving borrower’s death and then no less than annually thereafter for the duration of the Deferral Period.
Eligible Non-Borrowing Spouse is No Longer Eligible Certification:
If an Eligible Non-Borrowing Spouse, identified at closing, ceases to be married to his/her HECM borrower spouse for any reason other than death or fails to reside in the property as his/her Principal Residence, the Deferral Period that would prevent the displacement of such Non-Borrowing Spouse will no longer be in effect. The borrower must submit the certification described in Mortgagee Letter 15-02 within 60 days of the date the Non-Borrowing Spouse becomes ineligible.
The Mortgagee must also obtain and keep supporting documentation confirming the reason, such as a divorce decree or death certificate, in the HECM case files.
For more information see Mortgagee Letter 2015-02 at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
Any questions may be directed to the FHA Resource Center at Toll-Free (800) CALLFHA (225-5342) or by email to firstname.lastname@example.org. Persons with hearing or speech impairments may reach this number by calling the Federal Information Relay Service at (800) 877-8339.