FHA published an update to the Single Family Housing Policy Handbook (SF Handbook 4000.1) to add new sections applicable to Home Equity Conversion Mortgages (HECMs). The new HECM sections are:
- Section II.B, covering FHA policy for the origination through post-closing and endorsement of HECMs; and
- Section III.B, covering FHA policy for the servicing of HECMs.
Per the update, the new sections consolidate existing program guidance currently found in over 100 Mortgagee Letters, various handbooks, the HECM Financial Assessment and Property Charge Guide, and various other policy materials. The new sections also contain revisions to policy for clarity, consistency, and to conform to the published SF Handbook 4000.1 organizational structure. In addition, FHA updated HECM model documents. The changes in the new HECM sections must be implemented by April 29, 2024 (lenders may, however, implement the changes immediately).
Click to view the FHA Info #2023-84: https://www.tenaco.com/wp-content/uploads/2023/11/FHA-Info-2023-84-10-31-23.pdf
