History of Reverse Mortgages:
The Reverse Mortgage Program (HECM) was created for homeowners who are 62 or older by the Housing and Community Development Act of 1987, as part of the U.S. Department of Housing and Urban Development (HUD).
What is a Reverse Mortgage (Home Equity Conversion Mortgage):
The HECM FHA insured reverse mortgage can be used by senior homeowners age 62 and older to convert the equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home. The loan, commonly known as HECM, is funded by a lending institution such as a mortgage lender, bank, credit union or savings and loan association.