The HECM Program in a Snapshot

The first Home Equity Conversion Mortgage (HECM) loan was originated in 1989. As of early 2017, more than 1 million borrowers had taken advantage of the program, which enables participants to extract home equity while aging in place. The aging of the U.S. population and strong preference to age in place suggest potential for growth of the HECM program in the coming years. Any growth must be managed and strong consumer protections enforced, however, to ensure the viability of the HECM program. The purpose of this article is, first, to describe the reverse mortgage market using survey and administrative data and, second, to discuss the HECM program in light of certain demographic, economic, and housing market trends.