WBK Industry News - Federal Regulatory Developments

FHA Extends Temporary Partial Waivers to HECM Policies

On June 23, 2022, FHA issued an extension of the temporary partial waivers to its Home Equity Conversion Mortgage (HECM) policies.  These waivers of Mortgagee Letter 2015-11 and Mortgagee Letter 2016-07 were issued to help senior homeowners with HECMs who face financial hardships during the COVID-19 pandemic, and are now effective through December 31, 2022.

The temporary partial waiver of Mortgagee Letter 2015-11 allows mortgagees to offer repayment plans to HECM borrowers with unpaid property charges regardless of their total outstanding arrearage.  The temporary partial waiver of Mortgagee Letter 2016-07 temporarily eliminates the three-year waiting period for assignments of a HECM, thereby permitting mortgagees to immediately seek such assignments after using their own funds to pay unpaid property taxes and/or hazard insurance on or after March 1, 2020.