HUD Issues HECM Non-Borrowing Spouse Guidelines

30 Apr

Important news in the reverse mortgage world:  Mortgagee Letter 2014-07 was released by HUD this week, to become effective for FHA case numbers assigned on or after August 4, 2014.

The spouses of HECM borrowers who are not on the loan documents may remain in those homes after the death of their borrowing spouse for a newly defined “deferral period.”

The letter clarifies to whom the new guidelines will apply, the obligations of the non-borrowing spouse, and new at-closing certification requirements. 

The letter itself consists of 14 pages of definitions plus several attachments containing the new loan documents.  It can be read in full at the link above.

 

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