FHA INFO #16-07: Home Equity Conversion Mortgage (HECM) Mortgagee Optional Election Assignment Extension to 120-Day Assignment Requirement
February 12, 2016
The Federal Housing Administration (FHA) has been advised that certain states’ statute of limitations requirements prohibit a mortgagee from truthfully completing the Mortgagee Certification required to be signed at the time of assignment, per Mortgagee Letter (ML) 2015-15. Today, FHA provided alternative certification language for the affected states via Mortgagee Letter 2016-05. Mortgagees may request an extension of 30 days to the 120-day assignment requirement provided the sole reason a mortgagee is unable to submit the assignment request within the 120-day requirement is due to the state’s statute of limitations (i.e., preventing the mortgagee from truthfully certifying to the Mortgagee Certification found in ML 2015-15); and therefore, the mortgagee will certify using the alternate language provided in Mortgagee Letter 2016-05.
- View Mortgagee Letter 2016-05 and all other MLs, including Mortgagee Letter 2015-15, at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee
- The interim procedures are available at the FHA Connection message board at https://entp.hud.gov/clas/html/main.cfm and on the Home Equity Reverse Mortgage Information Technology (HERMIT) message board at https://www.hecmsp.com/reporting/showreportcached.aspx
Contact the FHA Resource Center:
- Visit our online knowledge base to obtain answers to frequently asked questions 24/7 at www.hud.gov/answers.
- E-mail the FHA Resource Center at firstname.lastname@example.org. Emails and phone messages will be responded to during normal hours of operation, 8:00 AM to 8:00 PM (Eastern), Monday through Friday on all non-Federal holidays.
- Call 1-800-CALLFHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at 1-800-877-8339.
Source: HUD (FHA INFO #16-07 full version)