The mortgagee must evaluate the mortgagor’s willingness and capacity to timely meet his or her financial obligations and comply with the mortgage requirements, and determine if the HECM will represent a sustainable solution to the mortgagor’s financial circumstances.
In conducting this financial assessment, mortgagees must take into consideration that some mortgagors seek a HECM due to financial difficulties, which may be reflected in the mortgagor’s credit report and/or property charge payment history. The mortgagee must also consider to what extent the proceeds of the HECM could provide a solution to any such financial difficulties. /wp-content/uploads/2019/05/HECM-Financial-Asseessment-Property-Charge-Guide.pdf