Is new financial information required to obtain a HECM Repayment Plan adjustment due to hardship?

Yes, Mortgagees must solicit new financial information from the borrower to conduct a new Repayment Plan assessment where the borrower has a verified hardship.
If the Mortgagee determines that the recalculated Repayment Plan is reasonable, the borrower may be provided with a new monthly payment amount and term. The Mortgagee may make further adjustments to the recalculated Repayment Plan in accordance with Mortgagee Letter (ML) 15-11. However, 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 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-05040