Deadline for HECM T&I Delinquencies Extended Again

The Federal Housing Administration has extended for a second time the deadline to submit due-and-payable notices on reverse mortgages when borrowers or their spouses can't pay property taxes and insurance.

In a Mortgagee Letter issued on Jan. 12, the FHA gives lenders until April 17 to file the notices in line with policy changes it made on April 23 last year.

This gives servicers more time to explore available loss mitigation options such as repayment plans for property tax and insurance delinquencies, according to the National Reverse Mortgage Lenders Association.

Servicers originally had 180 days from the date of the April 2015 policy letter to submit the due-and-payable notices related to T&I delinquencies. But in October of last year, the FHA extended the deadline for the first time, delaying it until Jan. 18.