Home / Press Room / Press Releases / HUD No. 18-124
 
  
 

HUD No. 18-124
HUD Public Affairs
(202) 708-0685
FOR RELEASE
Monday
October 22, 2018

FHA ANNOUNCES STREAMLINED CLAIM PAYMENT REQUIREMENTS IN HOME EQUITY CONVERSION MORTGAGE PROGRAM
Action intended to speed reverse mortgage claim payments

WASHINGTON – The Federal Housing Administration (FHA) today announced revised requirements for Home Equity Conversion Mortgage (HECM) servicers when they assign FHA-insured reverse mortgages to the agency for claim payment. 

Effective immediately, FHA-approved HECM servicers can use alternative supporting documentation in lieu of previously required materials that, in many instances, delayed claim processing.  Read FHA’s Mortgagee Letter.

FHA Commissioner Brian Montgomery said, “Streamlining the HECM claim payment process makes us more responsive to participating lenders and helps continue our effort to put the program on a more financially viable path.”

FHA’s new HECM claims payment requirements will ensure lenders participating in the program are not unduly burdened when seeking claims payments when the HECM reaches 98 percent of its maximum claim amount.  By streamlining the requirements and relaxing the documentation burden during the claims process, FHA is seeking to reduce the time required to make timely claims payments to servicers. 

###

HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
More information about HUD and its programs is available on the Internet
at www.hud.gov and https://espanol.hud.gov.

You can also connect with HUD on social media and follow Secretary Carson on Twitter and Facebook or sign up for news alerts on HUD's Email List.