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Federal Housing Administration To Publish Guidance For Home Equity Conversion Mortgage

The Newly published handbook is a central source of information to enhance the program delivery for seniors planning to age in place in their homes. 

November 1, 2023

The Federal Housing Administration announced the publication of its policies for the Home Equity Conversion Program (HECM) and the inclusion of these policies in the handbook. It is the first time that all HECM requirements will be available in a single place. The publication eliminates nearly one hundred individual policy documents concerning the HECM program. This handbook will strengthen the understanding and implementation of the program by the lenders to enhance their ability to engage with 60,000 homeowners who plan to age in the comfort of their own homes.

HUD’s Secretary Marcia L. Fudge said, “Home Equity Conversion Mortgages (HECM) are one of the strongest tools we have to ensure thousands of seniors can age in place. This new guidance will give people one single place to easily access the information needed to obtain and maintain a HECM.”

By incorporating new HCM sections into a single handbook, FHA has completed its efforts to deliver a consolidated and comprehensive single-family policy for lenders as well as other FHA program participants. The new sections of the HECM program include Section II.B covering FHA policy for origination and Section III.B covering FHA policy for HECM servicing and loss mitigation options. 

HUD’s Assistant Secretary Julia Gordon said, “HECM mortgages are an important tool to help senior homeowners age with security and dignity in their own homes. The completion of the HECM sections of our Single Family Handbook reinforces FHA’s commitment to the HECM program and is part of a larger effort to retool the program for long-term success.”

Additional resources such as frequently asked questions, training, and other things regarding HECM will be made available soon. 

This body of work has been done by taking feedback from HECM lenders, consumer advocates, and other housing industry participants.

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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 Publishes Comprehensive Guidance for the Home Equity Conversion Mortgage Program”. Department of Housing and Urban Development, October 31, 2023, 

Federal Housing Administration Publishes Comprehensive Guidance for the Home Equity Conversion Mortgage Program | / U.S. Department of Housing and Urban Development (HUD)

Last Updated: September 20, 2021