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The Federal Housing Administration (FHA) is continuing to seek a new servicing contract for Home Equity Conversion Mortgages (HECMs) sponsored by the federal government, but the agency remains dedicated to providing as much additional relief as possible to reverse mortgage borrowers that have been impacted by the COVID-19 coronavirus pandemic.
This is according to Kasey Watson, program director of HECM servicing at the National Servicing Center in the U.S. Department of Housing and Urban Development (HUD), addressing reverse mortgage industry players at the National Reverse Mortgage Lenders Association (NRMLA) Virtual Annual Meeting & Expo this month.
Reverse mortgage industry stakeholders have continued to hope for a resolution to back-end servicing issues in the HECM portfolio, and while these resolutions have not come yet, they are a priority for FHA in 2021. Additionally, the HECM program is also being targeted to benefit from various updates to FHA’s information technology (IT) infrastructure, including modernizing the HECM section of the single family housing 4000.1 handbook.
HECM servicing contract ‘in-process’
Among one of the major priorities that the servicing center has for the HECM program is the procurement of a new, HUD Secretary-held HECM servicing contractor, Watson explained. Forward momentum on securing the new …
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