FHA issued Mortgagee Letter 2021-11, implementing additional protections for eligible non-borrowing spouses on all Home Equity Conversion Mortgages (HECMs). Per the Mortgagee Letter, FHA expanded:
- Criteria that will begin a deferral period for HECMs with case numbers assigned on or after August 4, 2014;
- Assignment criteria for Mortgagee Optional Election Assignments for HECMs with case numbers assigned prior to August 4, 2014; and
- Non-borrowing spouse protections to include a borrower residing in a healthcare facility for more than 12 consecutive months.
In addition, FHA eliminated the requirement for an eligible non-borrowing spouse to establish marketable title or other legal rights to remain in the property following the death of the HECM borrower. The additional protections are effective with case numbers assigned on and after September 3, 2021 (servicers may, however, implement the changes immediately).
Click to view the FHA Mortgagee Letter 2021-11: https://www.tenaco.com/wp-content/uploads/2021/06/FHA-Mortgagee-Letter-2021-11-05-06-21.pdf
