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Lender Alerts

Lender Alerts

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Home Equity Conversion Mortgage (HECM) Program

- Requirement of Second Appraisal

Dear Licensed Partner,

Effective FHA case numbers assigned on or after October 01, 2018 through September 30, 2019 per ML 2018-06, FHA will perform a collateral risk assessment of the appraisal submitted for use in the HECM origination.

Based on the outcome of the collateral risk assessment, FHA may require a second appraisal to be completed prior to approving or closing the HECM loan. The second appraisal report should not be ordered from the first appraisal company. The cost of the second appraisal report is eligible to be financed as part of the closing costs.

The lower of the two appraised values will be used to calculate the maximum claim amount.

Additionally, FHA no longer requires appraisal from another appraiser if the re-sale date is between 91 days and 180 days following the date of acquisition by the seller and the re-sale price is 100% over the purchase price.

For additional questions not answered by the guideline, please email Sun West’s underwriting scenario desk at for more information.

If you have any questions, please contact your Underwriting Hotline at (800) 241-7113.


Sun West Mortgage Company, Inc.

6131 Orangethorpe Avenue, Suite 500
Buena Park, CA 90620
Phone: (800) 453-7884

SW-1: Our No Overlays Program

This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.

Equal Housing Opportunity