Mortgagee Letter 2010-07 informs lenders and HECM counselors of revisions to the model HECM Loan Agreement (HECM Loan Agreement) and Exhibits, and revisions to the Residential Loan Application for Reverse Mortgages form (Form 1009). The Mortgagee Letter also provides policy guidance regarding the prohibition of the Uniform Residential Loan Application form (Form 1003) for HECM loan transactions and reaffirms the use of the HUD/VA Addendum to Uniform Residential Loan Application (Form 92900-A).
The mortgagee letter is effective August 1, 2010 for all HECM case numbers assigned on or after this date. However, lenders may use the revised forms immediately. The Mortgagee Letter is also accompanied by five Attachments: FannieMae Form 1009; Home Equity Conversion Mortgage Loan Agreement; Exhibit 1 - Payment Plan; Exhibit 2 - Schedule of Closing Costs; and Exhibit 3 - Repair Rider.
