FHA Announces Temporary Partial Waivers to HECM Policy
FHA on Thursday issued temporary partial waivers to its Home Equity Conversion Mortgage (HECM) policies. These waivers provide mortgagees with expanded flexibility to help senior homeowners with HECMs who are struggling financially due to COVID-19.
- Temporary partial waiver of Mortgagee Letter 2015-11. This waiver allows mortgagees to offer repayment plans to HECM borrowers with unpaid property charges regardless of their total outstanding arrearage and is effective through June 30, 2022.
- Temporary partial waiver of Mortgagee Letter 2016-07. This waiver permits mortgagees to seek assignment of a HECM immediately after using their own funds to pay unpaid property taxes and insurance on or after March 1, 2020. Additionally, it eliminates the three-year waiting period for such assignments. The waiver is effective through June 30, 2022.
“As the nation continues its COVID-19 recovery, these waivers offer relief to HECM borrowers who were unable to make timely property charge payments due to financial hardships resulting from the pandemic,” FHA said.
FHA encouraged mortgagees to thoroughly review both waivers and the policies outlined in Mortgagee Letters 2015-11 and 2016-07.