What is the annual occupancy certification?

It is a form the servicer sends each year asking the borrower to confirm they still live in the home as their principal residence. A HECM stays in good standing only while that remains true, so the certification is how the servicer verifies it. It is signed and returned; some servicers offer phone or online confirmation.

What happens if I do not return it?

The servicer will follow up, and if there is no response it may treat the loan as potentially in default for non-occupancy and begin the process that can lead to the loan being called due and payable. Most of these files are simple administrative failures — a form lost in the mail, a spouse who handled the paperwork having passed away — so respond immediately if you receive follow-up notices.

I am in hospital or a rehabilitation facility. Am I still occupying the home?

A temporary absence for medical care generally does not end principal residence status, but loan documents define how long a continuous absence may last before the loan can be called due. Notify the servicer in writing about a long absence rather than waiting to be asked.

What if one of two borrowers moves into long-term care?

While at least one borrower continues to occupy the home as a principal residence and the loan obligations are met, the loan generally continues. Tell the servicer about the change and get their written confirmation of your status.

What else does the servicer check each year?

Typically that property taxes are paid, that hazard and any required flood insurance are in force with the servicer named appropriately, and — in some cases — the physical condition of the property. They also send annual statements showing the balance, accrued interest and mortgage insurance.

Can I travel or spend winters elsewhere?

Owning or using a second home is not automatically a problem, but the HECM property must remain your principal residence. Extended seasonal absences should be discussed with the servicer, and the annual certification must still be returned truthfully.

Who do I contact — my broker or the servicer?

For anything about an existing loan — statements, draws, payoff figures, occupancy, taxes and insurance — contact the servicer named on your statement. Servicing is often transferred after closing, so the servicer may not be the company that originated the loan.

Can a family member handle this for me?

Only with proper authority — a power of attorney the servicer has accepted, or a court-appointed representative. Set this up before it is needed; arranging authority during a health crisis is far harder.

How will the servicer contact me about the certification?

Typically by mail to the address on file, sometimes followed by phone calls if there is no response. Keep your mailing address and phone number updated with the servicer, especially if you move temporarily or change numbers.

Do I need to certify occupancy if I have a co-borrower who lives there full time?

If at least one borrower on the loan continues to occupy the home as a principal residence and all other loan obligations are met, the loan generally remains in good standing, but the certification should still be completed and returned as requested.

Is there a fee to complete the occupancy certification?

No. Servicers do not charge borrowers to process the annual occupancy certification; it is a routine servicing requirement. Be wary of any third party charging a fee to help you complete or file it.

What proof might the servicer accept besides the signed form?

Some servicers offer phone or online verification in addition to a mailed signed form. Ask your specific servicer what alternatives they accept if returning a paper form by mail is difficult.

After closing

Annual occupancy certification and life-of-loan servicing on a HECM

Published: January 1, 2026

A reverse mortgage does not end at closing. Every year the servicer verifies that you still live in the home, and every year the property charges have to stay current. This page explains each recurring obligation, the paperwork behind it, and how to keep an avoidable administrative slip from becoming a default.

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Homeowner completing the annual occupancy certification for a reverse mortgage servicer

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Get your Reverse Mortgage Estimate Summary.

Complete the short estimate form and we send back a full HECM summary: your estimated principal limit, complimentary home value estimate, payoff of any existing mortgage, and estimated proceeds available to you.

Complimentary home value estimate
Estimated principal limit for your age
Existing mortgage payoff included
Lump sum, line of credit, or monthly options

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Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Subject to HUD counseling, appraisal, credit and income review, and final lender approval. You remain responsible for property taxes, insurance, and home maintenance.

Estimate summary

Home value estimate: $412,000
Youngest borrower age: 72
Estimated principal limit: $219,400
Existing mortgage payoff: $68,000
Estimated proceeds available: $151,400

Simply Approved Mortgages • NMLS #2620881 • Equal Housing Opportunity

Definition

What is a occupancy certification?

A HECM is available only on a principal residence. Since there is no monthly payment to signal that a borrower is still there, HUD requires servicers to verify occupancy annually. The certification is that verification — a short document, usually mailed near the loan anniversary, asking the borrower to confirm continued residence and sign.

Nothing about it is adversarial. It becomes a problem only when it is not returned, because a servicer with no response has to treat the possibility that the property has been vacated.

Sources: HUD — HECM servicing and loss mitigation guidance; HUD — HECM Program

Your recurring obligations at a glance

Obligation	How often	Proof the servicer may want	If it slips
Occupancy certification	Annually	Signed form or verified phone/online confirmation	Non-occupancy default process can begin
Property taxes	Per county cycle	Paid receipt or county records	Servicer may advance funds and record a default
Hazard / flood insurance	Annually at renewal	Declarations page	Force-placed coverage, added to the balance
HOA / condo assessments	Per association	Association statement	Liens can affect the lender's position
Reasonable repair	Ongoing	Inspection or photos if a concern is raised	Property-condition default process

Simply Approved Mortgages perspective

A simple system that prevents most problems

Put three dates in one calendar: the loan anniversary, the insurance renewal, and each property tax instalment. Keep a single folder with the servicer's contact details, the latest statement, the insurance declarations page and the power of attorney. Tell one trusted family member where it is. Almost every servicing default we hear about would have been prevented by that folder existing.

Educational perspective from Simply Approved Mortgages LLC, a mortgage broker, NMLS #2620881.

Included with your estimate

Your numbers plus the 2026 Reverse Mortgage Guide.

Request your estimate and we include the 21-page plain-English guide: who qualifies at 62+, what a HECM costs, payout options, ongoing obligations, and the questions to ask before you sign.

21-page guide, no jargon
HUD/FHA program rules explained
Costs and fees broken down
Questions to ask any loan officer

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Estimate summary

Home value estimate: $412,000
Youngest borrower age: 72
Estimated principal limit: $219,400
Existing mortgage payoff: $68,000
Estimated proceeds available: $151,400

Simply Approved Mortgages • NMLS #2620881 • Equal Housing Opportunity

FAQ

Occupancy certification and servicing — FAQ

What is the annual occupancy certification?: It is a form the servicer sends each year asking the borrower to confirm they still live in the home as their principal residence. A HECM stays in good standing only while that remains true, so the certification is how the servicer verifies it. It is signed and returned; some servicers offer phone or online confirmation.
What happens if I do not return it?: The servicer will follow up, and if there is no response it may treat the loan as potentially in default for non-occupancy and begin the process that can lead to the loan being called due and payable. Most of these files are simple administrative failures — a form lost in the mail, a spouse who handled the paperwork having passed away — so respond immediately if you receive follow-up notices.
I am in hospital or a rehabilitation facility. Am I still occupying the home?: A temporary absence for medical care generally does not end principal residence status, but loan documents define how long a continuous absence may last before the loan can be called due. Notify the servicer in writing about a long absence rather than waiting to be asked.
What if one of two borrowers moves into long-term care?: While at least one borrower continues to occupy the home as a principal residence and the loan obligations are met, the loan generally continues. Tell the servicer about the change and get their written confirmation of your status.
What else does the servicer check each year?: Typically that property taxes are paid, that hazard and any required flood insurance are in force with the servicer named appropriately, and — in some cases — the physical condition of the property. They also send annual statements showing the balance, accrued interest and mortgage insurance.
Can I travel or spend winters elsewhere?: Owning or using a second home is not automatically a problem, but the HECM property must remain your principal residence. Extended seasonal absences should be discussed with the servicer, and the annual certification must still be returned truthfully.
Who do I contact — my broker or the servicer?: For anything about an existing loan — statements, draws, payoff figures, occupancy, taxes and insurance — contact the servicer named on your statement. Servicing is often transferred after closing, so the servicer may not be the company that originated the loan.
Can a family member handle this for me?: Only with proper authority — a power of attorney the servicer has accepted, or a court-appointed representative. Set this up before it is needed; arranging authority during a health crisis is far harder.
How will the servicer contact me about the certification?: Typically by mail to the address on file, sometimes followed by phone calls if there is no response. Keep your mailing address and phone number updated with the servicer, especially if you move temporarily or change numbers.
Do I need to certify occupancy if I have a co-borrower who lives there full time?: If at least one borrower on the loan continues to occupy the home as a principal residence and all other loan obligations are met, the loan generally remains in good standing, but the certification should still be completed and returned as requested.
Is there a fee to complete the occupancy certification?: No. Servicers do not charge borrowers to process the annual occupancy certification; it is a routine servicing requirement. Be wary of any third party charging a fee to help you complete or file it.
What proof might the servicer accept besides the signed form?: Some servicers offer phone or online verification in addition to a mailed signed form. Ask your specific servicer what alternatives they accept if returning a paper form by mail is difficult.

Related guides

Keep learning about reverse mortgages

References

References & sources

Every statistic, program rule, and regulatory claim on this page is sourced from the primary U.S. government agencies and industry bodies listed below. We never source program facts from competing brokers, blogs, or unverified secondary sources.

Source links are maintained by Simply Approved Mortgages and verified periodically. Federal program rules can change — always confirm current-year specifics with HUD, the CFPB, or a HUD-approved counselor before acting on any information on this page.

Protections, heirs & risks

Keep reading: the next steps most people take

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From the blog

Documents required for a reverse mortgage

When you apply for a HECM reverse mortgage, your lender will request documents that verify your identity, property ownership, income, and assets. Gathering these in advance can speed up your estimate and application.

Government-issued photo ID
Current driver’s license, passport, or state-issued ID.
Social Security number verification
Social Security card or award letter showing your SSN.
Current mortgage statement
Most recent statement if refinancing; purchase agreement if buying.
Homeowner’s insurance declarations page
Shows current coverage, premium, and mortgagee clause.
Property tax statement or receipt
Latest county tax bill showing taxes are current or payment history.
Bank statements
Last 1-2 months to verify closing funds and residual reserves.
Investment or retirement accounts
Recent statements for IRA, 401(k), brokerage, or other liquid assets.
HOA or condo information
Homeowners association statement or condo questionnaire if applicable.
Trust or title vesting documents
Required when the home is held in a living trust or entity.
Flood insurance declaration
Current policy if the property is in a flood zone.
HUD-approved counseling certificate
Required before loan application. Obtained from a HUD-approved reverse mortgage counselor.

Learn more about HUD-required counseling

Credit & pre-approval

Why we pull credit for your reverse mortgage pre-approval

HUD requires a Financial Assessment for every HECM reverse mortgage, including a review of your credit history and record of paying property taxes and homeowners insurance. As part of our standard broker/lender pre-approval process, we typically order a tri-merge credit report through a HUD-approved credit vendor to verify identity, review obligations, and confirm that you can continue paying property taxes, homeowners insurance, and maintenance after closing. Whether a tri-merge is required, and any fees, are set by the wholesale lender and credit vendor — not by HUD as a stand-alone rule.

Pay for your credit report — SmartPay

Simply Approved Mortgages uses SmartPay to securely collect the credit report fee for your reverse mortgage pre-approval. Payment goes directly to the credit vendor — not to us — and unlocks a tri-merge credit report (Equifax, Experian, TransUnion) that your loan officer uses to complete the broker/lender pre-approval file for HUD's Financial Assessment.

Secure, PCI-compliant checkout hosted by SmartPay
Standard step in our broker/lender pre-approval process (not a HUD stand-alone requirement)
Optional — you can decline; your loan officer will explain any impact on your options

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Check your credit first — $1 trial at MyITINCredit

Before you apply, it's smart to know exactly where your credit stands. MyITINCredit offers a $1 trial for 15 days that includes all three credit reports and scores (Equifax, Experian, TransUnion), plus ongoing credit monitoring so you can catch errors, dispute inaccuracies, and watch for identity theft.

See all 3 bureau reports & scores before your lender does
Ongoing monitoring alerts you to new accounts or score changes
Fix errors early — cleaner credit can widen your reverse mortgage options

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Credit report fees are paid directly to the credit vendor. Simply Approved Mortgages (NMLS #2620881) does not receive compensation from these credit services. MyITINCredit is an independent third-party service; pricing, terms, and features are set by that provider.

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