1988
President Reagan signs the Housing and Community Development Act of 1987 into law.

 
The Department of Housing and Urban Development (HUD) invites 50 lenders to participate in the Home Equity Conversion Mortgage (HECM) pilot program.


1989

The first Federal Housing Administration (FHA)-insured reverse mortgage is issued to Marjorie Mason of Fairway, KS by James B. Nutter & Company.

 

Fannie Mae agrees to purchase FHA-insured HECMs to provide program liquidity.


1998

 The HECM program is made permanent, with the volume cap raised to 150,000 HECMs.


2004

 FHA implements new HECM refinance rules allowing borrowers to pay the upfront mortgage insurance premium (MIP) on the difference between the original appraised value and the new appraised value (or FHA loan limit, whichever is less).


2007

  Ginnie Mae begins guaranteeing HECM Mortgage-Backed Securities (HMBBS), creating more competition for Fannie Mae and setting the stage for its exit from the business.

AARP reports that 93% of borrowers surveyed report satisfaction with the HECM program.


2008

   The industry makes reverse mortgage history, as HECM endorsements peak at 115,052.

 

HUD announces the HECM for Purchase program, helping seniors afford to buy homes that better meet their needs.

 

HECM is moved from the General Insurance Fund to the Mutual Mortgage Insurance Fund.

 

FHA issues clarification that enables the introduction of a fixed-rate, closed-ended HECM.

 The first Baby Boomers—a generation representing 43 million households—become age-eligible for a HECM reverse mortgage.


2011

    The Dodd-Frank Act creates the Consumer Financial Protection Bureau and authorizes it to regulate the activities of covered institutions, including reverse mortgage lenders and servicers.


2013

   Congress passes the Reverse Mortgage Stabilization Act of 2013, authorizing HUD to act in shoring up the mortgage insurance fund. 


2014

    HUD announces financial assessment guidelines to reduce defaults due to nonpayment of property taxes, insurance, and HOA dues. These would go into effect in April 2015.

 

The adjustable-rate HECM becomes the dominant product of choice over the fixed-rate HECM.


2016

   The FHA insures its one millionth HECM.


2017

    Principal limit factors are further reduced.

 FHA reduces the upfront MIP from 2.5% to 2.0%, and the annual MIP from 1.25% to 0.5%.