Seasonal Employment refers to employment that is not year round, regardless of the number of hours per week the HECM borrower works on the job. The lender may consider seasonal employment as effective income if the HECM borrower has worked the same line of work for the past two years and is reasonably likely to be rehired for the next season. The lender may consider unemployment income as effective income for those with effective seasonal employment income.
For seasonal employees with unemployment income, the lender must document the unemployment income for 2 full years and there must be reasonable assurance that this income will continue.
For employees with seasonal income, the lender must average the income earned over the previous two full years to calculate effective income.
For additional information see Mortgagee Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Sections 3.17 and 3.18 at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee