Reverse mortgages are not a "newfangled" financing option for seniors. They have been around for more than 50 years! As such, they have a long history which should provide evidence of the value of the program. Here's a brief look at key points in the history of reverse mortgages.
1961 - The first reverse mortgage is made by a savings and loan in Portland, Maine.
1983 - Congress authorizes the FHA to insure reverse mortgages.
1989 - The first HECM (Home Equity Conversion Mortgage) is made in Kansas.
1996 - Policy is expanded to allow for HECM loans on owner occupied 1 - 4 unit properties.
2001 - Training and testing is established for approved counselors for HECM loans.
2005 - The first HECM to HECM refi is authorized and made allowing only the difference in appraised value to be subject to the upfront MI premium.
2013 - New policies are implemented to provide additional protection to HECM borrowers.
2015 - Financial Assessment (FA) analysis is introduced (required) to determine if a set-aside will be required for the payment of property taxes and homeowners insurance.
The program will continue to improve and expand.
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