How to Fill Out and Submit the PHH Reverse Mortgage Draw Request

To pull cash from your PHH reverse mortgage line of credit, complete the one-page Line of Credit Draw Request form, have every borrower sign it in ink, attach a voided check or bank verification letter for ACH deposit, and send the package to PHH (now operating under the Onity Mortgage brand). You can download the form from the reverse mortgage portal at reverse.mortgagequestions.com or request a copy by calling customer service at 1-866-503-5559. Once PHH receives a clean request, processing takes up to five business days.

Check These Conditions Before You Submit

PHH will not release funds if your loan is out of compliance, so a few checks up front save time. Federal rules require HECM borrowers to keep the property as a principal residence and stay current on property taxes, homeowners insurance, and other obligations spelled out in the mortgage.1eCFR. 24 CFR 206.205 – Property Charges Falling behind on those charges without a Life Expectancy Set-Aside to cover them can trigger a “due and payable” status, which freezes the line of credit entirely.2eCFR. 24 CFR 206.27 – Date the Mortgage Comes Due and Payable

A loan also becomes due and payable if no borrower has lived in the home for more than 12 consecutive months, even due to illness, and no other borrower remains in residence.2eCFR. 24 CFR 206.27 – Date the Mortgage Comes Due and Payable PHH confirms residency through an annual occupancy certification letter that every borrower signs each calendar year.3GovInfo. 24 CFR 206.211 – Determination of Principal Residence and Contact Information If that letter is missing from your file, your draw will stall until you return it.

One more snag catches people: if your original loan included a repair set-aside, those funds stay locked until the required repairs are finished and pass inspection by a qualified inspector arranged through the servicer.4eCFR. 24 CFR 206.47 – Property Standards – Residential

Filling Out the Form

The form is short, but every field must match PHH’s records exactly.

  • Loan number, exactly as it appears on your monthly statements.
  • The dollar amount you want to draw. It cannot exceed your available principal limit, which you can check on the borrower portal or by calling customer service.
  • Signatures from every borrower listed on the mortgage. The form states that wet signatures are required and that electronic or digital signatures are not accepted, so even a co-borrower who does not want any of the funds must sign in ink.5PHH Mortgage. Reverse Mortgage Line of Credit Draw Request

The signature requirement is where many requests come back rejected. If a borrower is incapacitated and cannot sign, an agent acting under a durable power of attorney may be able to sign on their behalf. The POA must have been executed before the borrower became incapacitated, and both the servicer and the title company will need to review and approve the document. A physician’s letter confirming the borrower’s condition is often required as supporting documentation.

Setting Up ACH Deposit

PHH sends draw proceeds through the ACH system, so your request has to include verified banking information:

  • A voided check from the deposit account, or a bank verification letter on the bank’s official letterhead confirming your account details.
  • Account holder name matching the borrower name on the loan.
  • Routing number (nine digits, first group along the bottom left of a standard check).
  • Account number, which follows the routing number on the check.

Verify these numbers against a recent bank statement, not just the check. Transposed digits cause the transfer to fail, the funds get returned to the servicer, and you have to resubmit with corrected information. If you already have ACH on file from an earlier draw and nothing has changed, call PHH to confirm the prior authorization is still active before sending a new voided check.

Where to Send It

Once the form is signed and your banking documents are attached, send the whole package to PHH by one of these methods:

If you mail the form, use a delivery method with tracking. The processing clock does not start until PHH receives the request.

Processing Time and Common Reasons for Delay

PHH’s processing window is up to five business days from receipt. That covers internal review and approval, not the time it takes for money to hit your account. ACH deposits arrive faster than mailed checks, and PHH has noted that overnight delivery is not available for mailed checks, so having ACH on file before you submit matters if speed is a concern.6PHH Mortgage Corporation. Demystifying Servicing – What Every Loan Officer Should Know

If your request is denied or delayed, PHH will typically notify you by mail or through the portal. The most common causes are a missing co-borrower signature, an expired or missing annual occupancy certification, and banking documents that do not match the borrower’s name on the loan. Fixing the issue and resubmitting restarts the five-day clock.

What the Draw Does to Your Balance and Benefits

Every dollar you draw increases your outstanding loan balance, and interest starts accruing on those funds immediately. HECM loans also carry a mortgage insurance premium of 1.25% per year on the outstanding balance, which is added to what you owe.7Congressional Research Service. HUD’s Reverse Mortgage Insurance Program – Home Equity Conversion Mortgage Because you make no monthly payments, interest and MIP compound over time. The unused portion of your line of credit, meanwhile, grows monthly at your note rate plus 1.25%, increasing the amount available for future draws.8NRMLA. The Math Behind HECMs

The money itself is not taxable. The IRS treats reverse mortgage draws as loan advances rather than income: “Because reverse mortgages are considered loan advances and not income, the amount you receive isn’t taxable.”9Internal Revenue Service. Publication 936 – Home Mortgage Interest Deduction Draws will not push you into a higher tax bracket or increase the taxable portion of your Social Security benefits.

Means-tested benefits are a different story. Cash from a draw that sits in your bank account counts as an asset for programs like Medicaid, where the asset limit is generally $2,000 per applicant in most states. A large draw parked in your account when you apply could put you over the threshold, so drawing only what you need each month, or spending the funds before applying, avoids the problem.