The Department of Housing and Urban Development sent lenders a reminder of upcoming home equity conversion mortgage (HECM) changes Tuesday evening along with a notice of updates to the HECM calculator software.
“This message serves as a reminder of the September 30, 2013 effective date for certain changes announced in [Mortgagee Letter] 2013-27 that are effective for case numbers assigned on or after September 30, 2013,” says the agency.
The Origination Case Processing application in FHA Connection will shut down two hours earlier than usual on Saturday, Sept. 28, the message says, at 6:00 p.m. Eastern.
The earlier shutdown will allow changes contained in ML 2013-27 to be deployed into the product environment, and lenders will not be able to request new case number assignments until the application is back online on Monday, Sept. 30 at 8:00 a.m. Eastern.
“When the system comes back online, users will notice updates to the Case Number Assignment screen selections and new data fields on the Appraisal Logging, the HECM Insurance Application, and Case Query screens,” says the message.
HUD is also in the process of updating “version 2.0” of the HECM Calculator Software to accommodate the new principal limit factors table. The updated software will be released on or before Sept. 28, 2013.
The Mortgagee Letters can be accessed here.
Written by Alyssa Gerace