FHA issued Mortgagee Letter 2022-15, updating a Home Equity Conversion Mortgage (HECM) program requirement for Notice of Due and Payable status. Per the Mortgagee Letter, lenders and servicers must notify the borrower’s estate, heirs, or other party with legal title to the property that the HECM has become due and payable within 30 days of providing notice of the last surviving borrower’s death to HUD. Formerly, lenders and servicers were required to notify the borrower’s estate, heirs, or other party with legal title to the property that the HECM had become due and payable within 30 days of the date of the last surviving borrower’s death. The updated requirement must be implemented no later than November 29, 2022 for all HECMs that become due and payable on or after August 31, 2022 (regardless of case number assignment date or due and payable date). Servicers may, however, implement the changes immediately.
Click to view the FHA Mortgagee Letter 2022-15: https://www.tenaco.com/wp-content/uploads/2022/09/FHA-Mortgagee-Letter-2022-15.pdf
Click to view the FHA Info #2022-78: https://www.tenaco.com/wp-content/uploads/2022/09/FHA-Info-2022-78.pdf
