FHA Single Family Housing Policy Handbook 4000.1, III. SERVICING AND LOSS MITIGATION > B. Title II Insured Housing Programs Reverse Mortgages > 1. Servicing of FHA-Insured HECMs — p. Occupancy Certification

FHA Single Family Housing Policy Handbook 4000.1, Part III — p. Occupancy Certification (11/30/2023)

Effective 2023-11-30 · publisher's stamp for this provision

p. Occupancy Certification (11/30/2023) i. Standard (A) Annual Occupancy Certification The Mortgagee must obtain an annual certification from the Borrower and any Eligible NBS that the HECM Property remains the Borrower’s and any Eligible NBS’s Principal Residence. The Mortgagee may obtain the certification either by hard copy, electronically, or verbally. The certification must include the following warning above the signature line when obtained in writing: I/We, the undersigned, certify under penalty of perjury that the information provided above is true and correct. WARNING: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to five years, fines, and civil and administrative penalties. (18 U.S.C. §§ 287, 1001, 1010, 1012, 1014; 31 U.S.C. §§ 3729, 3802). When the certification is obtained verbally, the Mortgagee must first read the warning provided below before obtaining confirmation of the following from the Borrower and any Eligible NBS: We are required to tell you that anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties under federal statutes, including the False Claims Act and Fraud Enforcement and Recovery Act. Such criminal and/or civil penalties include confinement for up to five years, fines, and civil and administrative penalties. Do you certify under penalty of perjury that the information you provided is true and accurate? If so, say ‘yes’. If the Mortgagee receives the Borrower’s or Eligible NBS’s occupancy certification verbally, the Mortgagee’s employee must sign and date the verification and note the name and the phone number of each Borrower or Eligible NBS with whom occupancy was verified. Mortgagees must retain an audio recording of the verification in the Mortgagee’s servicing systems and provide the recording to FHA upon request. Temporary Absences The Mortgagee must advise the Borrower to notify the Mortgagee of absences from the Property in excess of two months to avoid determinations that the Borrower’s Principal Residence has changed. The Mortgagee must proceed in accordance with Due and Payable guidance in the event the Borrower fails to comply with the HECM provisions. (B) Identifying Non-Borrowing Spouses For HECMs with FHA case numbers assigned before August 4, 2014, Mortgagees must request information from Borrowers to attempt to identify NBSs. This request must be sent to Borrowers with the annual occupancy certification and include the following: • Is the Borrower currently married? • Is the Borrower’s spouse a Borrower on the HECM loan? • If the Borrower is currently married and the spouse is not a Borrower on the HECM loan, please provide the following: • NBS’s name; • NBS’s Social Security Number (SSN) or Taxpayer Identification Number (TIN); • NBS’s date of birth; and • date of the couple’s marriage. (C) Eligible Non-Borrowing Spouse Annual Certification Borrowers that identified themselves as being married with an Eligible NBS at origination must submit an additional certification on an annual basis certifying that the NBS continues to meet the Qualifying Attributes. This certification may be completed verbally consistent with the requirements for the Borrower’s or Eligible NBS’s Annual Occupancy Certification. Upon the death of the last surviving Borrower, the Mortgagee must comply with the requirements for a Deferral Period. In the event of a divorce between a HECM Borrower and the NBS, Mortgagees are required to obtain a copy of the final divorce decree. Such NBS is no longer eligible for a Deferral Period and the Mortgagee is no longer required to have such Borrower or the former spouse satisfy the NBS certification requirements. ii. Required Documentation The Mortgagee must retain in the Servicing File copies of all: • annual certifications; and • documentation of Borrowers’ absences from the Property.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09