If the HECM Certificate is not provided by the lender to the closing agency at loan closing, how will an agency get paid?
Date Published: September 2015
In order to comply with the policy guidance issued to lenders in Mortgagee Letters 2008-12 and 2009-11, lenders will use the Home Equity Conversion Mortgage (HECM) certificate as an invoice for the services provided by a counseling agency. The HECM certificate will be provided by the lender to the closing agent before or at closing and the closing agent will use the certificate to pay the appropriate agency out of loan proceeds. The fee will be recorded on the HUD-1 settlement statement in the 800 series.