Updated Guidance on Home Equity Conversion Mortgage Claim Type 22 Assignment Requests
The Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2018-08: Updated Guidance on Home Equity Conversion Mortgage (HECM) Claim Type 22 (CT-22) Assignment Requests. Read the Press Release.
This ML provides consolidated and updated guidance regarding the submission of HECM assignment requests to HUD. It outlines the documentation and procedures required to demonstrate that a HECM has been serviced in accordance with applicable HUD regulations and meets all assignment eligibility criteria regarding the provision of evidence of:
- Current hazard insurance
- Provision of alternative evidence of death of borrower
- Clarification of “current” taxes
- Submission of evidence of completion of repairs
- Submission of clarification regarding mobile home title
The guidance in this ML benefits both HECM borrowers and servicers as it allows alternative sources of documentation, as well as streamlines some of the claims processes. It also modifies or supersedes policy language in ML 2017-05, where applicable, and is effective immediately.