| Forward>> | Close |
Use HECM Insurance Application to process a request for FHA mortgage insurance for a Home Equity Conversion Mortgage (HECM) direct endorsement (DE) case. Within 60 days after the closing date of the mortgage, HECM Insurance Application must be processed by the lender and the case binder (closing package) submitted to the HUD Homeownership Center (HOC). For lenders participating in the Lender Insurance (LI) Reverse program, the case binder is only submitted upon request.
Certain prerequisites must be met before HECM Insurance Application can be processed:
A HECM refinance loan cannot be endorsed for FHA insurance until the FHA insurance
on the prior loan is terminated. If it is not terminated, an error message is
received when HECM Insurance Application is
processed indicating the servicer for the prior loan must be contacted. Please
note that FHA insurance on the prior case must be terminated after Case
Number Assignment processing and before HECM
Insurance Application processing.
HECM housing counseling is optional for a HECM refinance if certain conditions are met per Housing Counseling Program Handbook 7610.1.
When HECM Insurance Application is processed,
the system automatically determines whether the case meets most of the conditions
for waiving the counseling. If these conditions are met and the Home Equity Conversion
Mortgage (HECM) Anti-Churning Disclosure - form HUD-92901 was included in the
case binder, counseling may be waived.
The sources of information for HECM Insurance Application processing may include, but are not limited to, the documents listed below:
These documents, together with any other required documents, are included in the case binder.
HECM Calculator on the FHA Connection and HUD.gov websites can be used to calculate the principal limit allowed, analyze and compare different payment options, and generate reports.
The HOC reviews HECM Insurance Application information and the case binder submitted by the lender. Lenders can use Case Query to determine whether a case has been endorsed. For multiple cases, MIC/NOR List can be used. If the case is endorsed for FHA insurance, a Mortgage Insurance Certificate (MIC) is issued. Use Mortgage Insurance Certificate to view and print the MIC. If the case is not endorsed, a Notice of Return (NOR) is issued. Use Notice of Return to view and print the NOR. The case binder is returned to the lender. Notice of Return and Case Query both provide the outstanding conditions or problems that prevented endorsement. To remedy this situation, Insurance Application information can be updated and the case binder revised and resubmitted to the HOC.
The Lender Insurance (LI) Reverse program allows qualifying lenders to endorse their reverse mortgages (HECM cases) for FHA insurance. The MIC is available online when the lender successfully endorses the case. Case binders are only submitted when requested by a HOC and can be sent by mail, in paper format, or electronically. Case binders must be submitted to the appropriate HOC within 10 business days of the request date. Binder Selection is used to track case binders that were requested, received, or not accepted. It is also used to track additional documentation requested for a submitted case binder.
Only the HOC can endorse the case or issue a Notice of Return (NOR) if the:
You can access HECM Insurance Application through the following sequence of FHA Connection links: Single Family FHA, Single Family Origination, Case Processing, and HECM Insurance Application.
HECM Insurance Application - Processing
HECM Insurance Application Page - Field Description
HECM Insurance Application Update Page - Field Descriptions
HECM Insurance Application Results Page - Field Descriptions