When is a servicing lender required to obtain an appraisal on a HECM?

The servicing lender must obtain an appraisal of the property insured with a HECM loan as follows:

  • No later than 30 days after the mortgagor is notified that the mortgage is due and payable
  • No later than 30 days after the mortgagee becomes aware of the mortgagor's death
  • Upon the mortgagor's request in connection with a pending sale
  • No later than 15 days before a foreclosure sale


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

   Toll-Free Telephone Number: (800) CALLFHA (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

24 CFR 206.125(b)  https://www.ecfr.gov/cgi-bin/text-idx?SID=09b894fb1a22a1e435c8a39734ad3ce3&mc=true&node=se24.2.206_1125&rgn=div8


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-02496