HUD Changes Requirements for Late Reverse Mortgage Endorsements

The Department of Housing and Urban Development has updated the certification language that must accompany all late Home Equity Conversion Mortgage endorsement requests through Mortgagee Letter 2013-2

For those “late” requests for insurance endorsement from HUD, or those case binders received more than 60 days after the loan closing or funds disbursement, the lender must also submit a dated certification with an original signature on company letterhead with the company’s address and phone number, as outlined in the mortgagee letter. 

The certification must also state that at the time of certification, all payments have been made as specified; that mortgage insurance premiums, late charges and interest have been remitted; the borrower is in good standing in terms of required property charges; and that the lender did not provide funds to keep those property charges current.

The new certification requirements will go into effect 60 days from the mortgage letter, dated January 30, according to HUD.

View the mortgagee letter.

Written by Elizabeth Ecker

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