Loan Application. (Mortgagee Letter 2020-49; December 22, 2020) Janet M. Golrick, Acting FHA Commissioner (January 2021) • FHA took unprecedented actions to respond to the COVID-19 pandemic, which included implementing a moratorium on foreclosures, allowing for exterior appraisals and temporarily modifying verification of self-employment and rental income. (Mortgagee Letters 2021-03, 2021-04 and 2021-05) Lopa P. Kolluri (February 2021 to May 2022) • FHA took unprecedented actions to respond to the COVID-19 pandemic, which included implementing a moratorium on foreclosures, allowing for exterior appraisals and temporarily modifying verification of self-employment and rental income. (Mortgagee Letters 2021-06, 2021-07, 2021-15, 2021-16, 2021-19 and 2021-24) • FHA eliminated the London Interbank Offered Rate (LIBOR) as an acceptable interest rate index and replaced it with the Secured Overnight Financing Rate. (Mortgagee Letter 2021-08; March 11, 2021) • FHA updated the questionnaire forms lenders use to obtain condominium single-unit and project approvals. (Mortgagee Letter 2021-09; March 15, 2021) • FHA implemented new protections for eligible non-borrowing spouses, including for cases where a HECM borrower has resided in a healthcare facility for more than 12 consecutive months. (Mortgagee Letter 2021-11; May 6, 2021) • FHA announced that mortgagees could now submit appraisals for reverse mortgage endorsements through the FHA Catalyst: EAD Module. (Mortgagee Letter 2021-23; September 15, 2021) • FHA raised the national lending limit for HECMs to $970,800. (Mortgagee Letter 2021-29; November 30, 2021) • FHA extended the mandatory use date for mortgagees to submit appraisals for single-family forward and reverse mortgage endorsements through the FHA Catalyst: EAD Module to April 17, 2023. (Mortgagee Letter 2022-04; February 15, 2022) (Note: Kolluri served in the role of FHA Commissioner, but her official title was principal deputy assistant secretary.) Julia Gordon (May 2022 to present) • FHA extended the initial appraisal validity period from 120 to 180 days and the appraisal update validity period from 240 days to one year for most FHA mortgages and HECMs. (Mortgagee Letter 2022-11; July 12, 2022) • FHA extended the timeline for when mortgagees must notify a borrower’s estate that a HECM has become due and payable. (Mortgagee Letter 202215; August 31, 2022) • FHA said it would accept private flood insurance policies that meet its requirements instead of a National Flood Insurance Program policy. (Mortgagee Letter 2022-18; November 21, 2022) • FHA raised the national lending limit for HECMs to $1,089,300. (Mortgagee Letter 2022-21; December 1, 2022) • The U.S. Department of Housing and Urban Development (HUD) established a COVID-19 HECM Property Charge Repayment Plan to give borrowers more time to repay property charges advanced on their behalf by the servicer. (Mortgagee Letter 2022-23; December 15, 2022) • FHA established a final date of May 31, 2023, for HECM borrowers adversely impacted by COVID-19 to request additional time to bring their loans current and avoid foreclosure. (Mortgagee Letter 2023-08; April 7, 2023) The Evolution of the HECM, Part IIs continued from page 29 Janet Golrick Lopa Kolluri Julia Gordon 30 REVERSE MORTGAGE / JULY-AUGUST 2024
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