Requirements for HECM Housing Counseling Waiver
Housing counseling can be waived for a HECM refinance case if all of the following conditions are met:
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Requirements for HECM Housing Counseling Waiver
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Housing counseling can be waived for a HECM refinance case if all of the following conditions are met: |
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The Home Equity Conversion Mortgage (HECM) Anti-Churning Disclosure (form HUD-92901) was provided to the borrower and is included in the case binder. | ||
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The increase in the mortgagor's principal limit exceeds the total cost of the refinancing by an amount equal to five times the cost of the transaction. | ||
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The time between the closing on the original HECM loan being refinanced and the application for refinancing does not exceed five years, even if less than five years have passed since a previous refinancing. | ||
| If the HECM refinance case meets these conditions, the housing counseling information on the HECM Insurance Application form is optional. In all cases where the borrower opts out of the counseling requirement, the mortgagee must include in the case binder documentation that the conditions for such a waiver have been met. | |||
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