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d. Procedures for Endorsement (11/10/2026)
The Mortgagee must remit the IMIP before endorsement of the HECM. To initiate the insurance endorsement process, the originating or servicing Mortgagee must complete loan setup in HERMIT within 15 Days of closing to initiate HUD’s collection of IMIP. Mortgagees may access HERMIT for the IMIP that must be remitted. Once IMIP is remitted, the Mortgagee must complete the Insurance Application function in FHAC and compile the uniform case binder with all of the necessary documents.
Instructions for specific requirements for data format and delivery to FHAC are found in the FHA Connection Guide.
Either the sponsoring Mortgagee, principal, or authorized agent must:
• submit evidence of assignment of the case for endorsement in the name of the originating Mortgagee; and
• transfer the case number to another Mortgagee prior to closing, complete the Lender Transfer screen in FHAC, and complete the assignment of the HECM after endorsement to a new holding or servicing Mortgagee via FHAC.
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages
7. Post-closing and Endorsement
i. Late Initial Mortgage Insurance Premium Payments
(A) IMIP Late Charge and Interest
If the IMIP is paid more than 20 Days after the Closing Date, the Mortgagee will be assessed a one-time Late Charge of 4 percent of the amount owed, plus interest. The interest rate is determined in accordance with the requirements set forth in the U.S. Department of the Treasury’s Financial Manual in effect when the initial payment is received. The Mortgagee must pay the IMIP Late Charge and interest before FHA will endorse the HECM for insurance.
The Mortgagee must not add the amount of the Late Charge and interest to the Borrower’s outstanding loan balance.
The Mortgagee may submit a request to appeal a paid Late Charge or interest payment. For specific information on how to submit an appeal, see the HERMIT User Guide.
(B) Refund and Credit of Initial Mortgage Insurance Premium
The Mortgagee must use HERMIT to submit a request for an IMIP refund, stating the amount of refund requested, the reason for the request, and to whom the refund is to be paid. See the HERMIT User Guide for refund instructions.
The IMIP may be refunded only under the following circumstances:
• the Mortgagee remitted too much money;
• the HECM was never endorsed and is not eligible for endorsement;
• an appeal of Late Charges or interest, or both, was approved; or
• an erroneous Closing Date was entered and later corrected.
ii. Assembly of Case Binder for Electronic Submission
The Mortgagee must prepare and submit a uniform case binder through FHA Catalyst: Case Binder Module in accordance with the FHA Catalyst: Case Binder Module User Guide.
The Mortgagee must ensure that all case binders are complete, meet FHA specifications, contain all required documents, and are submitted electronically according to the document order designated below. All documents that are submitted electronically to FHA are considered complete and accurate copies of the original documents.
All appraisals must be submitted through FHA’s legacy EAD portal or FHA Catalyst: EAD Module prior to endorsement. Complete instructions and data delivery format requirements for each appraisal form are found in the Appraisal Report and Data Delivery Guide.
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages
7. Post-closing and Endorsement
HECM REQUIRED DOCUMENTS FOR ENDORSEMENT
Appraisal and Property Related Documents Designation of Assignment Insurance Option Conditional Commitment Direct Endorsement Statement of Appraised Value
HUD-92800.5B
Appraisal Update and/or Completion Report (Part A) Fannie Mae Form 1004D Compliance Inspection Report or the Appraisal Update and/or Completion Report (Part B)
Note: This form is used in conjunction with the Repair Rider and certifies that required repairs have been satisfactorily completed
HUD-92051 Fannie Mae Form 1004D/Freddie Mac Form 442
Repair Cost Estimate, if applicable
Note: The cost estimate is used in conjunction with the Repair Rider and establishment of the Repair Set-Aside
Life of Loan Flood Certification Evidence of Flood Insurance Evidence of Hazard Insurance Title Insurance Commitment or other acceptable evidence of title insurance (in an amount not less than the MCA)
Borrower certification stating no child under six years of age resides or will reside in the home (for Properties built before 1978 with lead-based paint hazards)
Borrower’s Contract with Respect to Hotel and Transient Use of Property (required on 2-, 3-, or 4-unit Properties)
HUD-92561
Exhibits for New Construction Builder’s Certification of Plans, Specifications, and Site HUD-92541 Warranty of Completion of Construction HUD-92544 One of the following:
• Certificate of Occupancy or equivalent and Building Permit; or
• three FHA inspection; or
• Final Inspection
Local Health Authority Approval for Individual Water and Sewer Systems
Subterranean Termite Protection Builder’s Guarantee HUD-NPMA-99-A New Construction Subterranean Termite Service Record HUD-NPMA-99-B Wood Destroying Insect Inspection Report or state mandated report
NPMA-33
Waivers – Property specific issued by HOC, if applicable LOMR, LOMA, or FEMA NFIP Elevation Certificate FEMA Form FF-206-FY- 22-152 Manufactured Housing Engineer’s Certification for Manufactured Housing Foundation
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages
7. Post-closing and Endorsement
HECM REQUIRED DOCUMENTS FOR ENDORSEMENT LOMR, LOMA, or FEMA NFIP Elevation Certificate FEMA Form FF-206-FY- 22-152 Condominiums FHA Condominium Loan Level/Single-Unit Approval Questionnaire
HUD-9991
HO-6 (Walls-In) Certificate of Insurance or Insurance Policy Condominium Rider, if applicable Specialized Eligibility Documents Presidentially-Declared Major Disaster Area Initial and/or Final Damage Inspection Report
Presidentially-Declared Major Disaster Area Interior and Exterior Photographs
Presidentially-Declared Major Disaster Area Repair Escrow Statement, if applicable
HECM for Purchase Transactions Sales Contract Amendatory Clause Real Estate Certification Other contract addenda or short sale approval Chain of Title and Title Evidence demonstrating Good and Marketable Title
Underwriting Documentation Request for Late Endorsement and Certification stating the HECM is in good standing and Property Charges are current, if applicable.
Certificate of HECM Counseling certificate(s) (received from a HUD-approved housing counseling agency and signed and dated by the Borrower and HECM counselor)
HUD-92902
HECM Financial Assessment Worksheet, or equivalent, signed by the underwriter, and any supporting documentation relevant to the underwriting decision
Borrower and Non-Borrowing Spouse Certifications Non-Borrowing Spouse and Non-Borrowing Owner Acknowledgement and Certification
Evidence of Marital Status
Note: This may include marriage certificate
First Note First Security Instrument (Mortgage or Deed of Trust) and all applicable riders
Second Note (optional for fixed rate HECMs) (Original mailed directly to HUD’s Servicing Contractor)
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages
7. Post-closing and Endorsement
HECM REQUIRED DOCUMENTS FOR ENDORSEMENT Second Security Instrument (Mortgage or Deed of Trust) and all applicable riders (Original mailed directly to HUD’s Servicing Contractor)
HUD-1 Settlement Statement and HUD-1 Addendum with Closing Certifications
Most recent payoff demand for mortgage debt paid off using HECM proceeds
Borrower authorization to apply unused escrow funds Notice to Borrower Loan Agreement and the following related exhibits:
• schedule of closing costs and liens;
• payment plan; and
• Repair Rider, if applicable. (Original mailed directly to HUD’s Servicing
Contractor)
Initial and Final Residential Loan Application for Reverse Mortgages (RLARM)
Fannie Mae Form 1009
Initial and Final HUD Addendum to Uniform Residential Loan Application (all pages)
HUD-92900-A
HECM Program Description disclosure Documentation supporting compliance with seasoning requirements for existing non-HECM liens
Documentation supporting payoff of HELOC using HECM proceeds
Legal documentation evidencing release of the Borrower’s financial obligation to satisfy the existing HECM
Borrower Authorization for Verification Borrower Authorization for Use of Information Protected under the Privacy Act
Cited Extenuating Circumstances and/or Compensating Factors
Mortgagee’s decision to require a Fully Funded or Partially Funded LESA
Calculation of the Projected Life Expectancy Property Charges
Evidence of the calculation of the amount of the LESA Evidence of CAIVRS authorization code and SAM/LDP check
Good Faith Estimate, including initial and revised GFEs, if applicable
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages
7. Post-closing and Endorsement
HECM REQUIRED DOCUMENTS FOR ENDORSEMENT Evidence of calculations for:
• Principal Limit; and
• monthly payment or line of credit. A screen print is acceptable.
Power of Attorney Waiver of three-day right of recession, if applicable Court order appointing a conservator or guardian Trust Agreement or the Declaration of Trust, if applicable Documents granting the borrower a Life Estate, if applicable Mortgage Riders & Allonges Subordinate Lien Agreement Title Evidence demonstrating Good and Marketable Title HECM-to-HECM Refinance Documentation Home Equity Conversion Mortgage (HECM) Anti-Churning Disclosure
HUD-92901
Payoff Statement(s) for all liens to be satisfied with mortgage proceeds
All supporting calculations for blocks 1 and 2 on the Anti- Churning Disclosure
Borrower Identification Documentation Evidence of the Borrower’s age and Eligible NBS’s age, if applicable
Evidence of the Borrower’s SSN and Eligible NBS’s SSN, if applicable
Credit and Capacity Documentation Credit report(s) Evidence of CAIVRS authorization code and SAM/LDP check
Verification of Mortgage or rent Verification of Property Charges Tax deferral waiver or exemption Credit-related documentation and explanations Source of Funds Verification Verification of non-gift source of funds Verification of gift source of funds Income and Employment Documentation Verification of Income Verification of Assets Residual Income Analysis Worksheet HECM for Purchase Documentation Evidence that Borrower’s recent debts were not borrowed to meet the cash investment requirement
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages
7. Post-closing and Endorsement
iii. Case Binder Submission – Direct Endorsement [Text was deleted in this section.]
The case binder must be received by FHA no later than 60 Days after the Disbursement Date.
(A) Late Submission
If the case binder is submitted more than 60 Days after the Disbursement Date, the Mortgagee must submit a late endorsement request, certifying that:
• at the time of certification, all payments to the Borrowers have been made in accordance with time frames specified by the payment option;
• the MIP, Late Charge, and interest due have been remitted;
• the Borrower is current in paying their Property Charges, i.e., taxes, Ground Rent, Flood and Hazard Insurance premiums, and special assessments; and
• the Mortgagee or its agent did not provide funds to bring and/or keep the Property Charges current or to bring about the appearance that the Borrower has complied with the obligations of the HECM.
FHA will not insure a HECM that does not comply with FHA requirements when submitted for endorsement.
Each late endorsement request must:
• list the FHA case number;
• list the Borrower’s name;
• be dated and signed by the Mortgagee’s representative; and
• be printed on company letterhead with the Mortgagee’s address and telephone number.
(B) After Receipt of a Notice of Return
Notice of Return (NOR) refers to a notification to the Mortgagee specifying the reason a Mortgage is not currently eligible for endorsement.
If FHA issues a NOR, the Mortgagee may request reconsideration for insurance endorsement. All requests for reconsideration must be received by FHA within the 60-Day endorsement submission period or within 30 Days of the issuance of the NOR, whichever is longer. If the request for reconsideration is submitted after this time period, the Mortgagee must follow the guidelines for late submission.
Mortgagees must resubmit additional documentation for reconsideration and resolution of the NOR.
iv. Ineligible for Endorsement
If the HECM is ineligible for insurance endorsement, FHAC issues a NOR, which states the reasons for non-endorsement and any corrective actions that the Mortgagee must take.
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages
7. Post-closing and Endorsement
v. Mortgagee with Conditional Direct Endorsement Approval (Test Case)
For Mortgagees who receive a HECM Direct Endorsement Program Test Case phase approval letter from FHA must follow the Test Case Phase Case Binder Submission process.