Section: Programs
Category: Mortgage Custody Program
Page Type: Program Page
Page ID: P-217
KB Source: KB-400
Extracted Source Sections: KB-400B
Last Updated: 2026-06-14

Mortgage Custody Program - Eligibility Considerations

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Source coverage role: Program topic page

Primary Knowledge Base material

SECTION KB-400B - PARTICIPANT PROFILE FRAMEWORK

Purpose

The purpose of this section is to define the type of homeowner the Mortgage Custody Program is intended to serve.

The Mortgage Custody Program is designed for homeowners who wish to preserve long-term ownership of their property despite financial challenges that may make traditional mortgage solutions unavailable, impractical, or insufficient.

Primary Audience

The Mortgage Custody Program is generally intended for owner-occupied homeowners who continue to view homeownership as an important long-term objective.

The program is intended for homeowners who may be facing affordability challenges, housing instability, financial hardship, mortgage pressure, or other circumstances that place ownership at risk.

The homeowner's primary concern is often not simply reducing expenses.

The greater concern is preserving ownership and avoiding a permanent exit from the housing market.

Core Participant Profile

The Mortgage Custody Program is generally intended for homeowners who may have:

• Meaningful equity remaining

• A strong desire to retain ownership

• A long-term ownership objective

• Housing affordability challenges

• Limited traditional financing options

• Limited restructuring options

• Limited refinancing options

• Circumstances that threaten ownership stability

• Willingness to explore alternative ownership-preservation structures

The homeowner may recognize that a traditional solution is no longer realistic but may still believe the property is worth preserving.

Common Situations

The Mortgage Custody Program may be considered where a homeowner is experiencing:

• Income Reduction

• Employment Changes

• Credit Deterioration

• Mortgage Arrears

• Debt Pressure

• Tax Arrears

• Business Challenges

• Divorce or Separation

• Estate-Related Issues

• Financial Hardship

• Foreclosure Risk

• Power of Sale Risk

• Other circumstances affecting affordability or ownership stability

The existence of one or more of these factors does not automatically create eligibility.

Each situation remains subject to review.

Ownership Preservation Mindset

The Mortgage Custody homeowner is often motivated by ownership preservation rather than short-term financial optimization.

In some situations, selling the property may be technically possible.

However, the homeowner may believe that selling would:

• Eliminate future ownership opportunities

• Destroy long-term housing goals

• Remove future appreciation potential

• Eliminate family legacy objectives

• Make future re-entry into the housing market unrealistic

For these homeowners, preserving ownership may remain a higher priority than maximizing short-term financial outcomes.

Meaningful Equity Profile

Mortgage Custody generally requires meaningful equity worth preserving.

While each situation is assessed individually, homeowners typically possess approximately 15% to 25% or greater equity before a custody structure becomes practical.

The objective is not merely to preserve equity.

The objective is to preserve a realistic ownership pathway where meaningful equity still remains.

Owner-Occupied Requirement

The Mortgage Custody Program is generally intended for owner-occupied residential properties.

The program is designed to support homeowners seeking to preserve ownership of their principal residence.

Investment properties, purely speculative holdings, or non-owner-occupied situations are generally outside the primary focus of the program.

Program Fit

A homeowner may be suitable for Mortgage Custody where:

• Ownership remains a priority

• Meaningful equity remains

• Affordability pressure exists

• Traditional solutions are unavailable or insufficient

• Selling is not the preferred outcome

• Long-term ownership remains important

• A custody structure may improve the likelihood of preserving ownership

Participation Principle

Applying to the Mortgage Custody Program does not guarantee:

• Eligibility

• Acceptance

• Custody Approval

• Trustee Availability

• Affordability Improvement

• Mortgage Approval

• Ownership Preservation

• Program Participation

Each situation remains subject to review, suitability, opportunity availability, professional review, legal considerations, mortgage considerations, and program requirements.

Guiding Principle

The Mortgage Custody Program is intended for homeowners who continue to view ownership as worth preserving despite financial challenges and who wish to explore alternatives that may help protect both their remaining equity and their long-term path to homeownership.

Knowledge Base source reference

Page ID: P-217

Inventory category: Programs / Mortgage Custody Program

Inventory page type: Program Page

KB source listed in inventory: KB-400

Extracted source sections: KB-400B