By the Division of Banks
Amended requirements for Industry Letter on HUD changes
The Division is extending the due date for compliance with the Financial Assessment requirement and Funding requirement for the payment of property charges outlined in Mortgagee Letters 2013-27 and 2013-28 (Mortgagee Letters). Lenders with approved reverse mortgage programs must submit their amended loan documentation and updated policies and procedures to demonstrate compliance with the financial assessment requirement and funding requirement for the payment of property charges outlined in the Mortgagee Letters to the Division 30 days prior to the effective date to be designated by HUD.
Lenders with approved reverse mortgage programs must submit amended loan documentation to evidence compliance with the Initial Disbursement Limits, Single Disbursement Lump Sum Payment Option, Initial Mortgage Insurance Premiums, Principal Limit Factor Tables, Initial Mortgage Insurance Premium Calculation for Refinance Transaction requirements outlined in Mortgagee Letters 2013-27 and 2013-33 which became effective for case numbers assigned on or after September 30, 2013, by December 31, 2013.
Should you have any additional questions you may contact Amy Hassey at 617-956-1543 or Aimee Desai at 617-956-1527.
Please visit the Division’s website for information on the Industry Letter on Recent HUD Changes to Home Equity Conversion Mortgage (HECM)- Reverse Mortgage Mortgagee Letters 2013-27 and 2013-28 issued on September 11, 2013.