HECM Reverse Mortgages

This Mortgagee Letter describes the replacement index that lenders and servicers should use for adjustable rate HECMs in place of the LIBOR index, which is no longer maintained.

This Mortgagee Letter revises the eligibility rules for non-borrowing spouses of reverse mortgage borrowers to remain in the home. These policy changes make it easier for non-borrowing spouses with HECMs originated both before and after August 4, 2014, to access the necessary home retention options while they reside in the home.

Establishing the 2024 maximum claim amount limit for HECMs at $1,149,825. This limit also applies to special exception areas (Alaska, Hawaii, Guam, and the Virgin Islands).

Establishing the 2023 maximum claim amount limit for HECMs at $1,089,300. This limit also applies to special exception areas (Alaska, Hawaii, Guam, and the Virgin Islands).

Mortgagees may evaluate a HECM borrower for permissive loss mitigation after first legal action has been taken with reference to a HECM letter.

This HUD letter to mortgagees sets the 2022 nationwide Home Equity Conversion Mortgage (HECM) limits, effective for case numbers assigned on or after January 1, 2022.

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.