The History of Reverse Mortgages

1961: Nelson Haynes of Deering Savings & Loan originated America's first-ever Reverse Mortgage in Portland, Maine. He created this unique type of loan because Nellie Young (the widowed wife of his high school football coach) didn't know how to stay in her home after losing her husband.

1983: The first congressional hearing concerning Reverse Mortgages took place. The Senate approved a proposal by Senator John Heinz to have reverse mortgages insured by the Federal Housing Administration (FHA).

1989: The James B. Nutter Company issued America's first FHA-insured Home Equity Conversion Mortgage (HECM) to Majorie Mason in Kansas City, Missouri.

1998: The HUD Appropriations Act was passed, making the HECM program both official and permanent. Congress began to allot funds for counseling, outreach, and consumer education.

2004: The FHA implemented HECM Refinancing, meaning existing HECM borrowers were given the opportunity to refinance their HECM Loans.

2008: The SAFE Act -- which required each state to implement consistent procedures when licensing and registering HECM Loan Originators - was established.

2009: The HECM for Purchase Loan was introduced. For the first time in Reverse Mortgage history, borrowers were allowed to purchase a new home without making monthly mortgage payments.

2013: HUD released new HECM policies (such as restricting borrowers from tapping into all of their equity in the first year) in an effort to make the product safer, stronger, and less risky for borrowers.

2014: HUD finalized Financial Assessment guidelines which required lenders

to analyze borrowers' income sources and credit history in an effort to reduce defaults and protect consumers.

2016: The FHA insured its one-millionth HECM Loan.