FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > B. Title II Insured Housing Programs Reverse Mortgages > 7. Post-closing and Endorsement — b. Mortgagee Pre-endorsement Review Requirements

xviii. Good Faith Estimate The Mortgagee must confirm the initial and any revised GFEs are included. xix. Credit Report(s) The Mortgagee must confirm that the HECM file contains a credit report for each Borrower. If there are multiple credit reports, all credit reports must be submitted in the case binder. xx. CAIVRS Report The Mortgagee must confirm that the HECM file contains a clear CAIVRS report or documentation from the creditor agency to support the verification and resolution of the debt. xxi. Asset Verification The Mortgagee must confirm that the HECM file contains the VOD and/or bank statements. xxii. Income Verification The Mortgagee must confirm that the HECM file contains verification of the Borrower’s income. xxiii. Gift Letter The Mortgagee must confirm that the HECM file contains a gift letter, if applicable. xxiv. Total Annual Loan Cost Documentation The Mortgagee must ensure the TALC documentation is included. xxv. Evidence of Calculations The Mortgagee must confirm evidence of calculations is included for: • Principal Limit; • monthly payment; and • line of credit. A screen print is acceptable. xxvi. Life Expectancy Set-Aside The Mortgagee must ensure LESA calculations are included, if applicable. A screen print is acceptable. xxvii. Power of Attorney, Conservator or Guardian The Mortgagee must ensure a durable POA or legal document appointing a conservator or guardian, if applicable, is included. xxviii. Assignment Insurance Option The Mortgagee must ensure selection of the assignment insurance option. xxix. Form HUD-92800.5B, Conditional Commitment Direct Endorsement Statement of Appraised Value The Mortgagee must ensure form HUD-92800.5B, Conditional Commitment Direct Endorsement Statement of Appraised Value, is included. xxx. Form HUD-92051, Compliance Inspection Report, or Fannie Mae Form 1004D/Freddie Mac Form 442, Appraisal Update and/or Completion Report, if Applicable

(A) Form HUD-92051, Compliance Inspection Report The Mortgagee must confirm that form HUD-92051, Compliance Inspection Report, is completed, signed, and dated by an approved inspector. Local government inspection with the underwriter certification may be accepted.

(B) Fannie Mae Form 1004D/Freddie Mac Form 442, Appraisal Update and/or Completion Report The Mortgagee must confirm that Fannie Mae Form 1004D/Freddie Mac Form 442, Appraisal Update and/or Completion Report, Part B, is completed, signed, and dated by an FHA Appraiser in good standing on the FHA Appraiser Roster. xxxi. Other Property Inspections and Reports, if Applicable The Mortgagee must ensure the HECM file contains property inspections and reports to address deficiencies noted by the Appraiser or otherwise required by the Mortgagee to meet MPR. xxxii. Appraisal Report The Mortgagee must ensure that Fannie Mae Form 1004/Freddie Mac Form 70, Uniform Residential Appraisal Report (URAR), or other appropriate appraisal form, including all attachments and addenda, is complete, and contains the Appraiser’s signature and date. xxxiii. Flood Certification The Mortgagee must ensure the Life of Loan Flood Certification is included. If applicable, the Mortgagee must also obtain a: • FEMA LOMA; • FEMA LOMR; or • FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY-22-152). xxxiv. Specialized Eligibility Documents The Mortgagee must ensure that the HECM file contains all required program-specific documents. xxxv. Existing Properties Exhibits The Mortgagee must confirm that the documentation requirements found in the Property Acceptability Criteria section are in the mortgage file. xxxvi. Hazard Insurance The Mortgagee must ensure the Hazard Insurance policy is equal to the value of the property improvements. xxxvii. Title Insurance The Mortgagee must ensure the HECM file contains a Title Insurance Commitment or other acceptable evidence of title insurance, in an amount not less than the MCA. The title insurance policy must show the Borrower owns the Property in Fee Simple or on a Leasehold that complies with FHA requirements, and that the Mortgage will be a first lien of record when recorded. c. Inspection and Repair Requirements for HECMs Pending Endorsement in Presidentially-Declared Major Disaster Areas (08/19/2024) i. Standard All Properties with HECMs pending endorsement in areas under a PDMDA designated for individual assistance must have an onsite damage inspection report that identifies and quantifies any dwelling damage, which includes interior and exterior photographs. The damage inspection report must be completed by an FHA Roster Appraiser even if the inspection shows no damage to the Property, and the report must be dated after the Incident Period (as defined by FEMA) or 14 Days from the Incident Period start date, whichever is earlier. The Appraiser may, at their discretion, perform a Remote Observation of the Property. If the effective date of the appraisal is on or after the date required above for an inspection, a separate damage inspection report is not necessary. FHA does not require the Appraiser to ensure utilities are on at the time of this inspection if they have not yet been restored for the area. Damage inspections may be completed by any FHA Roster Appraiser in good standing with geographic competence in the affected market. If the Mortgagee uses a different Appraiser than the Appraiser that did the original inspection of the Property, the Appraiser performing the damage inspection must be provided with a complete copy of the original appraisal. All damages must be repaired by licensed contractors or according to local jurisdictional requirements. All damages, regardless of amount, must be repaired and the Property restored to pre-loss condition with appropriate and applicable documentation. Based on the damage amounts shown in the Pending HECM Endorsement table below, repairs may be: • completed prior to submitting for endorsement; or • completed after endorsement provided that a repair escrow is established, and repair costs do not exceed permissible thresholds. The terms and conditions of establishing a repair escrow are not under FHA’s purview and must be negotiated between the Borrower and Mortgagee. ii. Required Documentation Mortgagees must include the initial damage inspection report in the case binder for all Properties. The following table shows additional required documentation for Properties that have closed but have not been endorsed. Pending HECM Endorsement If… Then... No damage exists, Submit the HECM for endorsement and provide the initial damage inspection report. Damages are below $5,000 and the Property is habitable, omplete repairs prior to submitting for endorsement and provide the initial damage inspection report; or Establish a repair escrow prior to submitting for endorsement and provide the initial damage inspection report and repair escrow statement. Damages are $5,000 or above and the Property is habitable, Do not submit the HECM for endorsement. Repairs must be completed prior to endorsement. Provide the initial and final damage inspection report. The Property is not habitable, Do not submit the HECM for endorsement. Repairs must be completed prior to endorsement. Provide the initial and final damage inspection report.