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HUD Proposes Updates to Debenture Interest Rates for HECM Claims

HUD Proposes Updates to Debenture Interest Rates for HECM Claims

The Federal Housing Administration posted a draft Mortgagee Letter on its Drafting Table that proposes updates to HUD’s calculations for the payment of debenture interest on HECM claims.

The draft ML would also establish a process for retroactively adjusting the calculation of debenture interest for claims filed on HECMs that became due and payable on or after September 19, 2017.

What they’re saying: “To reaffirm its commitment to the future success of the HECM program and the senior citizen population it is designed to serve, HUD has determined that changes to its debenture interest payment methodology are necessary to maintain long-term program stability,” says the draft ML.

What’s next: NRMLA will be coordinating with the Servicing Committee and other stakeholders to develop and submit comments by the July 29 deadline.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.