Key HECM Mortgagee Letters

Most Important Mortgagee Letters
The most important mortgage letters on HECM counseling were issued by HUD on June 23, 2004 (ML 2004-25), December 30, 2004 (ML 2004-48), and November 1, 2005 (ML 2005-44). 

• Click here for a copy of ML 2004-25.
• Click here for a copy of ML 2004-48.
• Click here for a copy of ML 2005-44. 
• Then read each of them carefully.  

Other Key Mortgagee Letters
To find copies of all the other key HECM Mortgagee Letters listed below, go to Appendix A in the AARP Foundation's HECM Training Manual.

Mortgagee Letter #	Date	Topic
96-15	4/10/96	Expands HECM eligibility to 2- to 4-unit, owner occupied properties
96-41	8/3/96	Improves eligibility for condominiums
97-15	4/24/97	Changes rate at which principal limit (and creditline) grows from expected rate plus 0.5% to note rate (i.e., the rate currently being charged on the loan) plus 0.5%; revises legal documents; permits life estates
98-3	1/7/98	Establishes monthly servicing cap of $35 for HECMs with monthly adjustable interest
99-2	2/18/99	Explains and transmits consumer protections against excessive fees by "estate planners"
00-10	3/8/00	Raises origination fee limit to the greater of $2000 or 2% of the maximum claim amount, including any broker or correspondent fees; establishes 180-day limit for counseling certificate; eliminates requirement that lenders must interview homeowners face-to-face IF the counseling is provided face-to-face

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