HUD Publishes New HECM Counseling Mortgagee Letter

The Department of Housing and Urban Development published Mortgagee Letter 2010-37 on Tuesday.

According to the ML, lenders are required to provide each client with a list of HECM Counseling agencies and it must include no fewer than nine HUD-approved counseling agencies.

Within one business day of requesting an FHA case lender, a lender should complete the HECM referral list update in FHA Connection.  The screen must be completed prior to a HECM loan being endorsed for insurance says HUD.

Lenders are now required to input the nine agencies that the lender provided on the list given to the client.

The guidance provided in the ML is effective for case numbers issued on or after February 1, 2011. Lenders may opt to begin using these screens on November 22, 2010, however, it is not required until February 1, 2011.

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