May an additional corporate advance be made after a HECM repayment plan has been established?

If the borrower is currently subject to a Repayment Plan and again fails to pay required property charges, the Mortgagee may reevaluate the borrower for an additional corporate advance. Mortgagees must solicit new financial information from the borrower to conduct this new Repayment Plan assessment.

The revised Repayment Plan must recalculate the “Total Arrearage” which should include all outstanding corporate advances made. If the Mortgagee determines that a new Repayment Plan is not reasonable after performing this calculation, this loss mitigation option is not available. No borrower may be given more than 60 months (or such shorter amount of time as necessary to ensure repayment before the mortgage reaches 98 percent of the Maximum Claim Amount total to repay any and all advances.
For more information see Mortgagee Letter (ML) 15-11 available at

Any questions may be directed to the FHA Resource Center at Toll-Free (800) CALLFHA (225-5342) or by email to  Persons with hearing or speech impairments may reach this number by calling the Federal Information Relay Service at (800) 877-8339.

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-05034