HECM Financial Assessment and Property Charge Guide

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