FHA INFO #13-83: ML 13-45 - Financial Assessment Delay Announcement - FHA Loan Limits Appeals Extended to January 31

Post date: Dec 23, 2013 7:30:1 PM

NEWS AND UPDATES

TO:    All FHA-Approved Mortgagees

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What’s New

Effective Date for Home Equity Conversion Mortgage (HECM) Requirements

Today, FHA announced in Mortgagee Letter 2013-45 that it will delay the effective date for implementation of the Financial Assessment and Property Charge Set Aside Requirements for Home Equity Conversion Mortgages (HECMs).  These requirements were initially announced in Mortgagee Letters 2013-27 and 2013-28.

Mortgagees may review today’s Mortgagee Letter (ML 2013-45) at www.hud.gov/lenders under “What’s New.”

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Policy Change Update

In Mortgagee Letters 2013-27 and 2013-28, dated September 3, 2013, the Department of Housing and Urban Development (HUD) issued guidance to FHA-approved mortgagees regarding Financial Assessment Requirements and Property Charge Set Aside Requirements.   The effective date for those requirements applied to HECM case numbers assigned on or after January 13, 2014. 

On September 12, 2013, in Federal Register Notice FR- 5735–N–01, HUD solicited comments on the HECM Financial Assessment requirements. As a result of comments HUD received, HUD is updating HECM Financial Assessment and Property Charge Set Aside requirements.   HUD will issue updated guidance by Mortgagee Letter and the new guidance will be effective for HECM case numbers assigned no sooner than ninety (90) days from the date of the Mortgagee Letter.