HUD/FHA

This HUD letter to mortgagees deals with changes to interest rate requirements, including removal of the London Interbank Offered Rate (LIBOR) Index and replacement with the Secured Overnight Financing Rate (SOFR) index and permits mortgagees to commingle index types for newly originated annual adjustable interest rate home equity conversion mortgages (HECMs) when establishing the expected average mortgage interest rate using the U.S. Constant Maturity Treasury (CMT) and the SOFR index to establish the initial mortgage interest rate and periodic rate adjustments.

This HUD letter to mortgagees sets the 2021 nationwide Home Equity Conversion Mortgage (HECM) limits, effective for case numbers assigned on or after January 1, 2021.

This HUD letter to mortgagees sets the 2020 nationwide Home Equity Conversion Mortgage (HECM) limits, effective for case numbers assigned on or after January 1, 2020.

This HUD letter to mortgagees updates the mortgagee optional election (MOE) assignment for Home Equity Conversion Mortgages (HECMs) with FHA case numbers assigned prior to August 4, 2014.

This HECM reverse mortgage guide is effective for HECM case numbers assigned on or after October 3, 2016, and sets the standards for mortgagees to evaluate the mortgagor’s willingness and capacity to timely meet the reverse mortgage’s financial obligations and to comply with the requirements of the reverse mortgage, and to determine if the HECM will represent a sustainable solution in the mortgagor’s financial circumstances.