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The field descriptions for the HECM Financial Assessment Update page are provided below in the order they appear on the page under these sections: Credit Characteristics, Accessory Dwelling Unit, Monthly Effective Income, Monthly Expenses, Monthly Property Charges, Projected Life Expectancy Property Charges, Monthly Residual Income, Compensating Factors, and Life Expectancy Set Aside Requirement.
| Field | Description | ||||
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| FHA Case Number | Unique 10-digit identifier assigned to the mortgage by the Federal Housing Administration (FHA). | ||||
| Property Address | House number, street name, city, state, and zip code of the property (including unit number, if applicable). | ||||
| Last Action - ID | FHA Connection user ID of the person who last processed HECM Financial Assessment information for the case. | ||||
| Last Action - Date | Date HECM Financial Assessment information was last processed for the case. | ||||
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| Credit Characteristics | |||||
| Real Estate Taxes Current | Specifies whether property taxes payments are up to date. Source: HECM Financial Analysis Worksheet, Section A. | ||||
| Real Estate Taxes - Delinquent Last 24 Months | Specifies whether there was a delinquency in paying property taxes in the last 24 months. Source: HECM Financial Analysis Worksheet, Section A. | ||||
| HOA, PUD, Condo Fees Current | Specifies whether payments for homeowners association (HOA), planned unit development (PUD), or condominium fees are up to date. Source: HECM Financial Analysis Worksheet, Section A. | ||||
| HOA, PUD, Condo Fees - Delinquent Last 24 Months | Specifies whether there was a delinquency in paying homeowners association (HOA) or condominium fees in the last 24 months. Source: HECM Financial Analysis Worksheet, Section A. | ||||
| Real Estate Debt Current | Specifies whether payments to creditors for real estate debts are up to date. Sources: HECM Financial Analysis Worksheet, Section A, Fannie Mae form 1009, Section VI. | ||||
| Real Estate Debt - No Lates in Last 12 Months < 3 30 Day Lates in Last 24 Months | Specifies whether there were no late payments in the last 12 months and less than three 30-day late payments in the last 24 months. Sources: HECM Financial Analysis Worksheet, Section A; Fannie Mae form 1009, Section VI. | ||||
| Other Installment Debt Current (Non-Real Estate) | Specifies whether payments are up to date for a non-real estate loan requiring the periodic payment of principal and interest. Source: HECM Financial Analysis Worksheet, Section B. | ||||
| Other Installment Debt - No Lates in Last 12 Months < 3 30 Day Lates in Last 24 Months | Specifies whether there were no late payments in the last 12 months and less than three 30-day late payments in the last 24 months. Source: HECM Financial Analysis Worksheet, Section B. |
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| Revolving Debt Current | Specifies whether payments are up to date for a revolving debt (credit arrangement that requires the borrower to make periodic payments but does not require full repayment by a specified point of time). Source: HECM Financial Analysis Worksheet, Section B. | ||||
| Revolving Debt - No 90 Day Lates < 3 60 Day Lates in Last 12 Months | Specifies whether there were no 90-day late payments and less than three 60-day late payments in the last 12 months. Source: HECM Financial Analysis Worksheet, Section B. | ||||
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| Accessory Dwelling Unit | |||||
| Accessory Dwelling Unit | Specifies whether the property has an accessory dwelling unit (ADU). Sources: Fannie Mae Form 1004 and Fannie Mae Form 1007. | ||||
| Amount of Total Income Derived from ADU | Total amount of monthly income the borrower receives from the rental of the ADU. Sources: HECM Financial Analysis Worksheet, Section F; Fannie Mae Form 1004, Fannie Mae Form 1007, and Form 1040, Schedule E. | ||||
| Limited or No History of ADU Income | Specifies whether the borrower has limited or no history of rental income from the ADU since the previous tax filing. | ||||
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| Monthly Effective Income | |||||
| Imputed Monthly Income from Dissipation of Assets | Estimate of imputed monthly income of all borrowers if liquid assets are dissipated and converted to monthly payments. Source: HECM Financial Analysis Worksheet, Section D. | ||||
| Monthly Income from All Other Sources | Effective monthly income of all borrowers from all sources (e.g., employment, pension, Social Security, etc.), except imputed income from dissipated assets. Sources: HECM Financial Analysis Worksheet, Section F; Fannie Mae form 1009, Sections III and IV. | ||||
| Total Monthly Income | Sum of Imputed Monthly Income from Dissipation of Assets and Monthly Income from All Other Sources. | ||||
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| Monthly Expenses | |||||
| Real Estate Debt Monthly Payments | Monthly payment amount for a real estate debt (does not include monthly payments associated with a lien against the property to be paid off with HECM proceeds at closing). Source: HECM Financial Analysis Worksheet, Section H. | ||||
| Non-Real Estate Debt Monthly Payments | Monthly payment amount for installment or revolving debts or other non-real estate obligations. Source: HECM Financial Analysis Worksheet, Section H. | ||||
| Other Monthly Expense Payments | Monthly payment amount for income taxes, FICA, alimony and child support, judgment payments, bankruptcy payments, or real estate expenses not associated with the subject property. Source: HECM Financial Analysis Worksheet, Section H. | ||||
| Total Monthly Expense Payments | Sum of Real Estate Debt Monthly Payments, Debts (non-Real Estate) Monthly Payments, and Other Monthly Expense Payments. Source: HECM Financial Analysis Worksheet, Section H. | ||||
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| Monthly Property Charges | |||||
| Monthly Real Estate Taxes | Sum of annual property taxes from all taxing authorities divided by 12. Source: HECM Financial Assessment Worksheet, Section G. | ||||
| Monthly Hazard Insurance | Annual premium for homeowners/hazard insurance divided by 12. Source: HECM Financial Assessment Worksheet, Section G. | ||||
| Monthly Flood Insurance | Annual premium for flood insurance divided by 12. Source: HECM Financial Assessment Worksheet, Section G. | ||||
| Monthly Property Charges Subtotal | Sum of Monthly Real Estate Taxes, Monthly Hazard Insurance, and Monthly Flood Insurance. | ||||
| Monthly HOA, PUD, Condo Fees | Annual charges for homeowners association (HOA), planned unit development (PUD), or condominium fees divided by 12. Source: HECM Financial Assessment Worksheet, Section G. | ||||
| Monthly Other Property Charges | Other annual property charges or assessments divided by 12. Source: HECM Financial Assessment Worksheet, Section G. | ||||
| Total Monthly Property Charges | Sum of Total Monthly Property Charges Subtotal, Monthly HOA, PUD, Condo Fees, and Monthly Other Property Charges. | ||||
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| Projected Life Expectancy Property Charges | |||||
| Monthly Property Charges Subtotal x 1.2 | Monthly Property Charges Subtotal amount in the Monthly Property Charges section multiplied by 1.2. | ||||
| TALC Life Expectancy (in Months) | Life expectancy of the youngest borrower multiplied by 12 (life expectancy is the assumed loan period used for computing the total annual loan cost (TALC) rates). Source: HECM Financial Assessment Worksheet, Appendix 2. | ||||
| Expected Rate | Estimate of the average interest rate for the life of an adjustable rate mortgage (ARM). For a fixed rate mortgage, it is the same as the expected average mortgage interest rate. This rate is used to calculate the mortgage's principal limit and payment plan. It is also referred to as the expected average mortgage interest rate. Sources: Form HUD-92900-A, line 8, Home Equity Conversion Loan Agreement, Exhibit 1 - Payment Plan, or Note. | ||||
| Compounding Rate (Expected Rate + Annual MIP Rate) | Expected Rate plus the annual mortgage insurance premium rate. | ||||
| Projected Life Expectancy Property Charge | Amount of the Projected Life Expectancy Property Charge Cost formula results. Source: HECM Financial Assessment and Property Charge Guide, Sections 5.2 and 5.3. | ||||
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| Monthly Residual Income | |||||
| Family Size | All members of the household (without regard to the nature of the relationship to the borrower) including a non-borrowing spouse and other non-borrowing household members. Does not include a non-borrowing spouse and/or other non-borrowing household member whose residual income is equal to or greater than the income required for a one-person family size for the geographic area in which the property is located. Source: Fannie Mae form 1009, Section III. | ||||
| Residual Income Standard | Residual income applicable to the borrower’s family size and the geographic region in which the property is located. Source: HECM Financial Assessment and Property Charge Guide, Section 3.100. | ||||
| Total Monthly Income | Amount from the Total Monthly Income field of the Monthly Effective Income section. | ||||
| Total Monthly Expense Payments | Amount from the Total Monthly Expense Payments field of the Monthly Expenses section. | ||||
| Total Monthly Property Charges | Amount from the Total Monthly Property Charges field of the Monthly Property Charges section. | ||||
| Residual Income | Total Monthly Income minus Total Monthly Expense Payments and Total Monthly Property Charges. | ||||
| Monthly Residual Income Shortfall Calculation | |||||
| Residual Income Standard | Amount from the prior Residual Income Standard field in this section. | ||||
| Residual Income | Amount from the prior Residual Income field in this section. | ||||
| Monthly Residual Income Shortfall | Residual Income Standard minus Residual Income. | ||||
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| Compensating Factors | |||||
| Property Charge Payment History | Specifies whether borrower meets all of the following:
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| Access to Other Credit | Specifies whether the borrower has residual income that is 80%-99% of the applicable amount for the borrower’s family size and geographic region per Section 3.100 of the HECM Financial Assessment and Property Charge Guide and has access to revolving credit that provides the borrower with financial liquidity that would enhance his or her ability to endure a financial crisis. Credit report shows established credit lines, other than housing payment, open at least 6 months that were paid off in full monthly for the past six months. Source: HECM Financial Analysis Worksheet, Section L. | ||||
| Assets Equal to Life Expectancy Property Charges | Specifies whether the borrower has residual income that is 80%-99% of the applicable amount for the borrower’s family size and geographic region per Section 3.100 of the HECM Financial Assessment and Property Charge Guide and has assets equivalent to the anticipated property charge payments for the life expectancy of the borrower that were not dissipated or considered in the residual income calculation. Source: HECM Financial Analysis Worksheet, Section L. |
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| HECM Sufficient to Pay off Debts | Specifies whether the borrower has residual income that is 80%-99% of the applicable amount for the borrower’s family size and geographic region per Section 3.100 of the HECM Financial Assessment and Property Charge Guide and has HECM proceeds (based on original principal limit less required repair, life expectancy and servicing fee set asides and disbursements for mandatory obligations) that were not dissipated and counted as income, that are sufficient to pay off outstanding obligations such as revolving and installment debt that would reduce monthly payments to the extent that residual income would meet or exceed the applicable standard for his or her family size and geographic region on the Table of Residual Income in Section 3.100 of the HECM Financial Assessment and Property Charge Guide. Source: HECM Financial Analysis Worksheet, Section L. | ||||
| Non-borrowing Spouse Income | Specifies whether the residual income of a non-borrowing spouse (e.g., expected Social Security income or pension) was used as a compensating factor. This is a spouse, as defined by the state in which the spouse and co-borrower reside or state of celebration, who is not a co-borrower (mortgagor) at the time of loan closing. -and- Amount of income if selected. Source: HECM Financial Analysis Worksheet, Section L. |
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| Overtime, Seasonal, Part-time or Bonus Income | Specifies whether the borrower has documented overtime, bonus, part-time, or seasonal income that meets the following requirements:
Amount of income if selected. Source: HECM Financial Analysis Worksheet, Section L. |
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| Expected SSI or Pension Income | Specifies whether the borrower begins receiving pension or Social Security income within the next 12 months and the amount specified in the award letter would, if counted, result in total residual income equal to or exceeding the applicable amount for his or her family size and geographic region per Section 3.100 of the HECM Financial Assessment and Property Charge Guide. -and- Amount of income if selected. Source: HECM Financial Analysis Worksheet, Section L. |
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| Imputed Income from HECM | Specifies whether an increase in monthly income from dissipating available HECM proceeds (based on the original principal balance less required repair, life expectancy, and servicing fee set asides and disbursements for mandatory obligations) if counted, would result in a residual income equal to or exceeding the applicable amount for the borrower’s family size and geographic region per Section 3.100 of the HECM Financial Assessment and Property Charge Guide. -and- Amount of income if selected. Source: HECM Financial Analysis Worksheet, Section L. |
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| Life Expectancy Set Aside Requirement | |||||
| Requirement | Specifies whether the life expectancy set aside requirement is Not Required, Voluntary - Fully Funded, Required - Fully Funded, Required - Partially Funded based on the HECM Financial Assessment information. | ||||
| Amount | Amount of the life expectancy set aside, if required or voluntary. | ||||
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HECM Financial Assessment Page - Field Descriptions
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