Mortgagees (Lenders) must analyze a Non-Borrowing Spouse’s and Other Non-Borrowing Household Member’s obligations from the sources specified in Section 3.76 of the HECM Financial Assessment and Property Charge Guide only if the:
- Non-Borrowing Spouse’s income is used as a compensating factor or to reduce family size; or
- Other Non-Borrowing Household Member's income is used to reduce family size.
The Non-Borrowing Spouse’s expenses and the Other Non-Borrowing Household Member's expenses must meet the same documentation and verification standards as required for the borrower’s expenses.
For additional information see Mortgagee Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Section 3.96 and 3.97 at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee