FHA issued Mortgagee Letter 2024-18, updating debenture interest rates used for the payment of debenture interest for Home Equity Conversion Mortgage (HECM) claims and establishing a reimbursement process for adjusting debenture interest for claims already filed on HECMs that became due and payable on or after September 19, 2017. Per the Mortgagee Letter (ML), FHA:
- Modified 24 CFR § 206.146 (Debenture Interest Rate) by defining the date of default as the date for determining the debenture interest rate on loans that become due and payable after September 4, 2024 and reaffirming the interest rate used for the payment of debenture interest for HECM claims to align with the 2017 rule;
- Added Debenture Interest Rates (Section III.B.2.f.i(F)) to the Single Family Housing Policy Handbook 4000.1;
- Established a Debenture Interest Rate Adjustment (DIRA) process for HECM holders to request an adjustment to the debenture interest rate used to calculate payments for claims filed on HECMs that became due and payable on or after September 19, 2017, and filed prior to September 28, 2024; and
- Provided a DIRA request template that may be used for DIRA submissions (Attachment 1 for this ML).
The provisions of this ML are effective September 28, 2024.
Click to view the FHA Info #2024-63: https://www.tenaco.com/wp-content/uploads/2024/09/FHA-Info-2024-63.pdf
Click to view the FHA Mortgagee Letter 2024-18: https://www.tenaco.com/wp-content/uploads/2024/09/FHA-Mortgagee-Letter-2024-18-09-04-24.pdf
Click to view the FHA Mortgagee Letter 2024-18 (Attachment 1): https://www.tenaco.com/wp-content/uploads/2024/09/FHA-Mortgagee-Letter-2024-18-Attachment-1.xlsx
