HECM and the National Servicing Center
The potential closure of the HUD field office in Tulsa, Oklahoma, where HECM-specific functions are carried out by the National Servicing Center (NSC), could have significant impacts on the HECM program. Bloomberg reports that these functions may be relocated to a different field office in Texas.
According to 2019 congressional testimony from the Government Accountability Office (GAO), the NSC handled 105,000 HECM-related servicing inquiries between 2015 and 2018. NSC staff have been involved in policy work related to insurance claims and interest rate calculations for the HECM program.
HUD’s website lists Tulsa as the location for all HECM-related functions, while general NSC inquiries are directed to an address in Oklahoma City. The NSC’s goal is to work with FHA homeowners and lenders to prevent foreclosure and provide guidance and training to mortgage lenders and housing counseling agencies.
Federal requirements for field offices
Antonio Gaines, president of the American Federation of Government Employees (AFGE) National Council 222, argues that the proposed closures of HUD field offices may violate federal law. The U.S. Code mandates that the Secretary maintain at least one office in each state for processing mortgage insurance.
“The HECM program is a mission critical function and it will continue,” HUD assured HousingWire’s Reverse Mortgage Daily (RMD).
Industry response, Urban report
Steve Irwin, president of the National Reverse Mortgage Lenders Association (NRMLA), stated that NRMLA is in communication with relevant HUD staffers to understand the future of HECM insurance endorsements. The Urban Institute’s recent report highlighted the importance of well-staffed HECM program functions at HUD and FHA to support senior homeowners in accessing home equity for various needs.