For employees who are salaried and whose income has been and will likely be consistently earned, the lender must use the current salary to calculate effective income.
For employees who are paid hourly, and whose hours do not vary, the lender must consider the HECM borrower’s current hourly rate to calculate effective income.
For employees who are paid hourly and whose hours vary, the lender must average the income over the previous two years. If the lender can document an increase in pay rate the lender may use the most recent 12-month average of hours at the current pay rate.
For additional information see Mortgagee Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Sections 3.11 and 3.12 at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee