On June 18, 2014, the Federal Housing Administration (FHA) released two Mortgagee Letters on the Home Equity Conversion Mortgage (HECM) program.  The first Mortgagee Letter, ML 2014-10, reminds mortgagees of FHA’s requirements prohibiting misleading or deceptive advertising, including in descriptions of the HECM program.  The second Mortgagee Letter, ML 2014-11, addresses risk associated with certain fixed interest rate products.  FHA will only insure fixed interest rate reverse mortgages where the homeowner is limited to a single, full draw made at closing.

Mortgagee Letter 2014-10pdf

Mortgagee Letter 2014-11pdf

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