The HECM Program in a Snapshot

George R. Carter III
Joshua J. Miller
U.S. Department of Housing and Urban Development

Opinions expressed in this article are those of the authors and do not necessarily reflect the views and policies of the U.S. Department of Housing and Urban Development or the U.S. government.

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.