The FHA issued two temporary partial waivers to its Home Equity Conversion Mortgage (HECM) policies on September 2, 2021, because of hardships that borrowers have faced during the COVID-19 pandemic. The temporary partial waivers affect Mortgagee Letter 2015-11 and Mortgagee Letter 2016-07 and are effective through June 30, 2022.
The 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 waiver of Mortgagee Letter 2016-07 permits mortgagees to seek assignment of a HECM immediately after using their own funds to pay unpaid property taxes and/or hazard insurance on or after March 1, 2020. Additionally, the waiver eliminates the three-year waiting period for such assignments.