HUD HECM Program Policy Revisions


On Oct. 31, HUD published updated policies for HECM program.


  • HUD issued FHA INFO 2023-84 announcing the publication of consolidated and comprehensive policies for its Home equity conversion mortgage (HECM).
  • The policies are now included in the Single-family housing policy handbook 4000.1.
  • Updates incorporate guidance for FHA’s Title II Insured HECM program.
  • Concurrently, HUD issued revised information collection on HECM program, #189864.
  • Updated Guidance
  • Publication eliminates 100 individual policy documents associated with HECM program.
  • New HECM sections consolidate existing program guidance found in mortgagee letters, handbooks, HECM Financial Assessment and Property Charge Guide, other materials.
  • Sections revise policy for clarity, consistency; and conform to handbook structure.
  • New sections of handbook are Section II.B, covering FHA policy for origination through post-closing, HECM endorsement; Section III.B, on FHA policy for HECM servicing.
  • Stakeholders are encouraged to review and familiarize themselves with HECM sections.
  • Effectiveness
  • Changes to HECM sections must be implemented by Apr. 29, 2024.

Regulators HUD
Entity Types Bank; MG Orig; Servicer; Thrift
Reference PR 23-248, Info 2023-84, 10/31/2023;
Functions Compliance; Financial; Legal; Operations
Countries United States of America
Category
State
Products Banking; Loan; Mortgage
Regions Am
Rule Type Final
Rule Date 10/31/2023
Effective Date 4/29/2024
Rule Id 189862
Linked to Rule :189864
Reg. Last Update 10/31/2023
Report Section US Consumer

Last substantive update on 11/02/2023