The Department of Housing and Urban Development published a new “Home Equity Conversion Mortgage Required Documents for Endorsement” list.
According to Mortgagee 2010-22, effective October 4, 2010, mortgagees are required to use the new list when submitting case binders to the Homeownership Centers.
This endorsement list replaces the “Home Equity Conversion Mortgage Required Documents for Endorsement” list attached to Mortgagee Letter 2004-39, and incorporates changes referred to in the following Mortgagee Letters:
- Mortgagee letter 2005-34 regarding the adoption of revised appraisal reporting forms;
- Mortgagee Letter 2006-23 regarding the elimination of Photo Identification evidence;
- Mortgagee Letter 2006-24 regarding the form HUD-92564-CN “For Your Protection: Get a Home Inspection” and
- Mortgagee Letter 2009-11 regarding the HECM for Purchase Program.
Mortgagees are reminded that they must mail the HECM second security instrument directly to HUD’s Loan Servicing Contractor C&L Service Corp/Morris Griffin Corporation (CLS-MGC). In addition, mortgagees must ensure that all documents included in the case binder are accurate and complete.
“Failure to provide accurate and complete documentation may result in the case binders being returned to the mortgagees for failure to meet FHA requirements and may result in civil or administrative action being taken against the mortgagee and other participants involved in the HECM transaction,” said HUD.