Lehman Brothers lives in U.S. reverse mortgage history. The Federal Housing Administration’s (FHA) home equity conversion mortgage (HECM) has had Fannie Mae’s deep pockets as a secondary market source of cash for reverse mortgage lenders since its inception in 1989. And since 2007, Ginnie Mae has opened HECM to world investors through its HECM mortgage-backed security (HMBS).Read more

In the beginning, there were 50 lenders chosen by lottery in a pilot program. The U.S. Department of Housing & Urban Development (HUD) authorized each lender to make just 50 Home Equity Conversion Mortgages (HECMs), a novel home equity loan without monthly repayment obligations.Read more

Like most pioneers and leaders in other industries and other spheres of life, pioneer loan officers in the U.S. reverse mortgage industry were a curious bunch of happy warriors. They were the foot soldiers who brought the innovative home equity loan to America’s skeptical senior homeowners.Read more

History matters. As HECM (Home Equity Conversion Mortgage), and the multi-billion-dollar* reverse mortgage industry it has spun, turn 20 this year, it is fitting that we take a moment to reflect on the industry’s first two decades through the eyes and work of those who were not only present at its creation, but also made significant contribution to its growth.Read more