FHA: Wire Transfers Not Accepted to Pay Off Reverse Mortgages, Partial Claims

December 10, 2020

The Federal Housing Administration (FHA) issued a bulletin Dec. 8 to serve as a reminder that wire transfers are not accepted to pay off Secretary-held Home Equity Conversion Mortgages (HECMs) and partial claims.

New Frequently Asked Questions (FAQ) detail how payoff funds can be submitted. All payoffs for Secretary-held HECMs and partial claims must be sent to HUD’s loan servicing contractor, Novad Management Consulting, in the form of certified funds, such as a cashier’s check. 

The FHA said any notices or statements containing wire instructions are fraudulent. Anyone who receives a secretary-held HECM or partial claim payoff statement that contains wiring instructions should immediately contact the FHA Resource Center by email or by phone at 800-225-5342 to report that a possibly fraudulent payoff statement has been received and to obtain a correct payoff statement.

Contact ALTA at 202-296-3671 or communications@alta.org.