HECM draw annual

Tax-free HECM line-of-credit proceeds drawn this year (coordinated draws after down years plus last-resort backstop draws).

Field: HECM draw Unit: US dollars Basis: nominal dollars Computed by: Engine Status: Complete chain

Appears in: cash-flow-drilldown (hecmCoordinatedDraw and hecmBackstopDraw source lines (YearCashFlow line identities))

Calculation records

• Annual HECM draw, including the last-resort backstop Formula record, justified by derivation

  Purpose: What an open reverse-mortgage line actually lends the household this year.

  Statement: projection/internal/types/result.ts#YearResult.hecmDraw is the accepted coordinated draw plus any backstop draw planned by projection/internal/annualHecmBackstop.ts#annualHecmBackstopPlan against a true portfolio shortfall. With the coordinated draw zero, the backstop is min(true shortfall, available open line), where the available line is max(0, principalLimit - loanBalance); draw policy does not gate it, because every open line is a last backstop before the household is reported depleted. Units: nominal USD per year. Rounding: none.

  Formula: backstop = min(shortfall, max(0, principalLimit - loanBalance)); hecmDraw = coordinated + backstop; shortfallAfterHecm = max(0, shortfall - backstop)

  • shortfall: True portfolio shortfall before the backstop (unit: usd) (domain: above the annual funding tolerance)
  • principalLimit: HECM line principal limit (unit: usd) (domain: nonnegative)
  • loanBalance: Amount already drawn on the line (unit: usd) (domain: nonnegative)

  Timing: once per projection year, after the accepted withdrawal plan

  Rounding: none

  Limits:

  • Asserted twice: at the exported backstop planner with the worksheet's open line, 40,000 shortfall and 25,000 available line verbatim, and as the published hecmDraw of a real simulatePlan year built from the same inputs (a last-resort line on a 500,000 primary residence at the schema's minimum 5-percent principal limit and a zero growth rate, so the available line is exactly 25,000, against a 40,000 lifestyle need with no portfolio at all). Plan assumptions beyond the worksheet's inputs for that ledger year: a 64-year-old filing single in KY at a zero state rate, so no Medicare or marketplace premium can change the need, and no coordinated draw is possible because the policy is lastResort
  • The worksheet derives only the backstop case; the extract states no sizing formula for a coordinated draw, so this record makes no claim about one

  Provenance: derived by codex, implemented by claude.

  Independent review: cursor

  Gates (6 of 6 pass): fixture registers a test: pass; pins resolve: pass; families exist: pass; worksheet exists: pass; mutation receipt exists: pass; provenance independent: pass

  Worksheet: hecm-draw-annual.md Mutation receipt: hecm-draw-annual.mutation.md

  Evidence tests: annualHecmBackstop.evidence.test.ts

  Implemented in: result.ts; annualHecmBackstop.ts

  Is the number of: hecm-draw-annual

  Feeds: spending-shortfall-annual, accounts-net-worth-annual

Engine source: engine/src/projection/internal/types/result.ts (YearResult.hecmDraw)