Compliance Question of the Week

The beneficiary on a Representative Payee account has requested a loan. What do we do? Can the beneficiary use the Supplemental Security Income (SSI) payments this way?

The first thing to remember is that the beneficiary does not have access to the money in the Representative Payee account. The rep payee does not have any requirement to make the payments, and you cannot compel them to do so. Even if the rep payee said they would make the payments, they could change their mind or a new rep payee could be assigned by the Social Security Administration (SSA).

The rep payee is to use the money in the account to make sure the beneficiary’s day-to-day needs for food and shelter are met. The money can then be used for any of the beneficiary’s medical and dental care that is not covered by health insurance, and for personal needs, such as clothing and recreation. If there is money left after the rep payee pays for the beneficiary’s needs, it must be saved.

So, the money from the SSA really cannot be used for consideration when underwriting the loan. If the beneficiary has any other income source, that can be used for making payments.

Related Links

SSA Rep Payee Guide


Questions? Contact the Compliance Hotline: 1.800.546.4465,

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