May a HECM borrower cancel the Life Expectancy Set-Aside if it was voluntarily established?

Once the borrower elected a fully funded Life Expectancy Set-Aside, the borrower cannot cancel that set-aside.

For additional information see Mortgagee Letter 2014-21 available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

ML 14-21; HQ Policy Determination


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-01123