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Posted April 20, 2015

HECM Automatic Case Number Cancellation Reminder

The HECM Financial Assessment and Property Charge policies become effective for case numbers assigned on or after April 27, 2015.  Mortgagees are reminded that consistent with current FHA policy:

  • Where there has been no last action for six months on uninsured HECM case numbers, the case number will automatically be cancelled in FHA Connection (FHAC).  A definition of last action and exceptions can be found in Mortgagee Letter 2011-10.
  • If the borrower is still interested in pursuing a HECM, Mortgagees must obtain a new case numberand will be required to fully comply with the new HECM Financial Assessment and Property Charge policies.

Mortgagees should review their Pending Case Cancellation Report to identify loans that are marked for automatic cancellation.  The Pending Case Cancellation Report is available in FHAC from the Origination Reports page. If the case number is automatically cancelled and a new case number is requested on or after April 27, 2015, the Financial Assessment and Property Charge Set Aside policies will be required for all prospective HECM borrowers.