Department of Housing and Urban Development: Home Equity Conversion Mortgages. In Mortgagee Letter 2008-38, HUD clarified the requirements for repayment of a HECM, and for termination of a HECM.The mortgagee letter clarified misunderstanding over the description of the HECM as a “non-recourse loan.” This means that a HECM borrower (or his or her estate) “will never owe...