The long awaited Home Equity Reverse Mortgage Information Technology (HERMIT) now has a scheduled launch date of October 9, the Department of Housing and Urban Development announced this week through Mortgagee Letter 2012-17. The platform launch has been postponed multiple times following delays in its development.
As a result of HERMIT going into effect, the Insurance Accounting Collection System (IACS) currently in use will be phased out. The new platform, HUD says, will improve the monitoring and tracking of the HECM loan portfolio in real-time and will automate the payment of insurance claims while increasing efficiency and mitigating insurance fund risk.
HERMIT will serve as HUD’s system of record for collecting mortgage insurance premiums, managing all servicing activities and paying insurance claims. The new system will allow lenders to use a single system for this process, as well as interact with HUD’s national servicing center. The manual claims process will become automated through the new online platform.
Once the platform goes live October 9, HUD’s Single Family Claims Branch will no longer accept paper claim packages for HECM claims.
Development of the HERMIT system falls under a $32 million contract awarded in by HUD in 2009.
Written by Elizabeth Ecker