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Federal Housing Administration To Propose New Enhancements To Home Equity Conversion Mortgage Program

HUD is requesting the public to share feedback on proposals to improve the program’s stability for senior homeowners. 

November 2, 2023

The Federal Housing Administration (FHA) has released proposed policy updates for its Home Equity Conversion Mortgage (HECM) program to enhance stability and adapt to market shifts. These changes underscore FHA’s dedication to the program and its senior beneficiaries. Feedback on the draft policy will be accepted until November 7, 2023.

HUD’s Secretary Marcia L. Fudge said, “At HUD, we’re constantly working to enhance, update, and streamline our key programs to make them accessible and easy to navigate for those we serve. We urge the public to provide us feedback on our new proposed changes to Home Equity Conversion Mortgages, so we can best benefit seniors, their families, and lenders.”

The Home Equity Conversion Mortgage program (HECM) is one of the programs to help seniors stay in the comfort of their own homes as they age. 

The updates made in the proposal will streamline certain requirements and reduce operational challenges concerning the HECM portfolio. Some of the key changes include allowing mortgage servicers to contact the borrowers, expanding the ability of mortgage servicers, streamlining requirements for coming up with alternatives to foreclosures, and providing a new incentive payment to mortgage servicers. 

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The content provided in this article draws inspiration and includes quotes from various reputable sources, including news articles, government data, and interviews. Affordable Housing 411 strives to ensure accuracy and credibility, but the information presented may be based on some external sources. We encourage readers to refer to the referenced materials for more in-depth insights and verification.

Department of Housing and Urban Development. “Federal Housing Administration Proposes New Enhancements to Home Equity Conversion Mortgage Program”. Department of Housing and Urban Development, November 1, 2023, 

Federal Housing Administration Proposes New Enhancements to Home Equity Conversion Mortgage Program | HUD.gov / U.S. Department of Housing and Urban Development (HUD)

Last Updated: September 20, 2021