If the insured Home Equity Conversion Mortgage (HECM) first mortgage is assigned to the Secretary, or if payments are made through the second mortgage under the Demand Assignment process, the Secretary is not required to assume responsibility for property charge payments, but may continue to administer payments for property charges for Borrowers from any funds available in a Life Expectancy Set-Aside.
For more information see Mortgagee Letters 2014-21 and 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee