“Other Non-Borrowing Household Member” is defined as a person, whether related to the Borrower or not, who occupies the property to be secured with the Home Equity Conversion Mortgage (HECM), who is not the spouse of the Borrower and who also is not a Borrower. An Other Non-Borrowing Household Member may voluntarily provide information on his or her income and Mortgagees (Lenders) may use his or her residual income to reduce the family size. See Table of Residual Income in Section 3.100 of the Guide.
For additional information see Mortgagee Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Section 3.5 at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee