The Federal Housing Administration (FHA) said Wednesday it will continue processing claims during the government shutdown but cannot endorse new Home Equity Conversion Mortgages (HECMs) until funding is restored. That information was confirmed by the National Reverse Mortgage Lenders Association (NRMLA).

Because most reverse mortgages fall under the FHA’s HECM program, FHA loan endorsements stop as soon as funding lapses. U.S. Department of Housing and Urban Development‘s (HUD) contingency plan for a lapse in appropriations, updated on Sept. 29, outlined HECM protocol:

“The Office of Single Family Housing will endorse loans, with the exception of Home
Equity Conversion Mortgages (HECM) details ⇒

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