www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

 
April 11, 1997
 
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
 
Mortgagee Letter 97-12
 
TO:  ALL APPROVED MORTGAGEES
 
SUBJECT:  Referral Fees Charged for Reverse Mortgages
 
     On March 17, 1997 HUD issued Mortgagee Letter 97-7 notifying
lenders that certain fees charged by "estate planning service"
firms, as described in the Letter, were not allowable.  The
Letter also advised mortgagees that reverse mortgages obtained
with the assistance of such services were not eligible for FHA
insurance.  On March 28, 1997, HUD issued Mortgagee Letter 97-9 
notifying mortgagees that the provisions of Mortgagee Letter 97-7
would not be implemented or enforced until further notice.
 
     Mortgagee Letter 97-7 is being withdrawn, effective as of
the date of this Letter.
 
Sincerely,
 

Nicolas P. Retsinas
Assistant Secretary for Housing-
Federal Housing Commissioner