Mortgage  Question?
Disclose Retirement Account to Apply Loan Modification?

Are you required to disclose your retirement account information when you apply for a loan modification?

Harry Jensen
, Trusted Mortgage Expert with 45+ Years of Experience
Edited by Michael Jensen

You are typically not required to disclose your retirement account information when you apply for a loan modification. Lenders usually require you to provide your checking and savings account statements but not your retirement account statements because funds in your retirement account may not be freely available to pay your mortgage.

The one exception is if borrowers do not have sufficient funds to meet the lender's reserve requirement. Some but not all lenders or loan programs require you to hold a certain amount of savings in reserve when your mortgage closes.

Review Best Mortgage Refinance Assistance Programs

For example, you may be required to have three-to-six months of total monthly housing expense -- which includes your mortgage payment, property tax and homeowners insurance -- in savings at closing. So if your total monthly housing expense is $2,000 and the reserve requirement is three months, you need to have at least $6,000 in your bank account when your loan closes (you can do what you want with the money after your loan funds but the money needs to be in your account at closing)

The reserve requirement is designed to help you continue to make your mortgage payment if you encounter financial challenges in the future. If you do not have a lot of money in savings then the lender may use your retirement account information as supporting documentation to meet the reserve requirement.

Lenders, however, should not use your retirement account information to require you to make a higher monthly payment, have a higher modified loan balance or to disqualify you from modifying your mortgage.


“What is a mortgage loan modification?”  CFPB.  Consumer Financial Protection Bureau, September 25 2017.  Web.

Current Refinance Mortgage Rates in Ashburn, Virginia as of May 22, 2024
View All Lenders


Rate data provided by Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes, insurance premiums or private mortgage insurance if applicable. Actual payments will be greater with taxes and insurance included. Read through our lender table disclaimer for more information on rates and product details.
« Return to Q&A Home
About the author
Harry Jensen, Mortgage Expert

Harry is the co-founder of FREEandCLEAR. He is a mortgage expert with over 45 years of industry experience. Over his career, Harry has closed thousands of loans for satisfied borrowers and now offers his advice and insights on FREEandCLEAR.  Harry is a licensed mortgage professional (NMLS #236752). More about Harry

Harry Jensen LinkedInLinkedIn | Email Harry JensenEmail