HUD Updates Counseling Guidance
Written by Brett Varner
The Department of Housing and Urban Development (HUD) has released a new mortgagee letter offering new guidance regarding the administration of HECM counseling.
Mortgagee Letter 2011-31 presents five separate updates or guidance to HECM counselors and lenders as it relates to the HECM counseling protocol and certificate:
Revisions to the Certificate of Counseling (HUD form 92902) – adds a specific data field for the attorney-in-fact holding a Power or Attorney name and signature, add the HECM Saver as an option to be presented by counselors, replaces the Agency Tax Identification Number with the Agency Housing Counseling System Identification number, and includes a HECM for Purchase certification by homebuyer.
Changes to the documentation of the power of attorney – the AIF’s name must be entered at the top of the certificate along with the name of the homeowner. The AIF must sign where indicated on the revised form.
Signatures on Certificate – all owners shown on the property deed and non-borrowing spouses must receiving counseling and must sign the counseling certificate.
Dates on Certificate – counselors are to complete both the date counseling completed and the date of expiration of the certificate.
Revisions to Certificate – revisions are only allowed up until the time of endorsement
Change Lenders & New Case Numbers – clarifies that a HECM certificate can be associated with a new case number and case numbers can be transferred to other lenders regardless of certificate expiration date.
If you would like more information about reverse mortgage counseling, contact our Reverse Mortgage Specialist at IReverse Mortgage. We are dedicated to answering all of your questions and providing the knowledge you need to make decisions for your future. Call 800-486-8786 ext 813