Are HECMs eligible for Mortgagee Optional Election (MOE) Assignment for reasons other than death of the last surviving borrower?

No. A Home Equity Conversion Mortgage (HECM) with unpaid property charges or that is otherwise eligible to be called due and payable for any reason other than the death of the last surviving borrower is eligible for the Mortgagee Optional Election (MOE) Assignment.


For more information see Mortgagee Letter 15-15 at

Any questions may be directed to the FHA Resource Center at Toll-Free (800) CALLFHA (225-5342) or by email to  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-04944