Member News Servicing Corner HECM Borrowers Win With These Changes Program Updates Streamline Servicing Requirements WITH THE PUBLICATION of Mortgagee Letter 202323, the U.S. Department of Housing and Urban Development (HUD) provided valuable benefits to HECM borrowers and their heirs by streamlining HECM servicing requirements and mitigating risk to the Mutual Mortgage Insurance (MMI) Fund. A few of the benefits include: • An expanded option for HECM borrowers to satisfy their annual occupancy requirement, • An increase in the property charge arrearage amount for Optional Delay, and • An expanded Cash for Keys offering payable in conjunction with short sale and deed in lieu of foreclosure loss mitigation options and prior to eviction after a foreclosure. These benefits are optional—and not required by HUD—so borrowers and their heirs must check with their servicer to confirm availability and requirements to qualify. Occupancy HECM borrowers now have a variety of options available to meet their obligation to certify their occupancy annually. Servicers have responded quickly to implement options that make the process easier for borrowers, such as providing methods to certify verbally and 34 REVERSE MORTGAGE / JULY-AUGUST 2024
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