1961
First reverse mortgage loan made by Nelson Haynes of
Deering Savings & Loan (Portland, ME) to Nellie Young, the
widow of his high school football coach
1963
First property tax deferral program offered in Oregon, financed
through Public Employees Retirement Fund
1970
Survey research on a “housing annuity plan” conducted in
Los Angeles by Yung-Ping Chen of UCLA
1975
Technical monograph on “Creating New Financial Instruments
for the Aged” authored by Jack M. Guttentag of The Wharton
School
1977
First RM loan program, “Equi-Pay”, introduced by Arlo Smith of
Broadview Savings & Loan in Independence, OH
1978
“Reverse Mortgage Study Project” funded by Wisconsin Bureau
on Aging, directed by Ken Scholen
First statewide deferred payment loan program offered by WI
Dept of Local Affairs and Development, designed by William Perkins
1979
First national “Reverse Mortgage Development Conference”
sponsored by WI Bureau on Aging in Madison, WI on May 21-22
San Francisco Development Fund’s “Reverse Annuity Mortgage
(RAM)” program funded by Federal Home Loan Bank Board,
foundations, and WI Bureau on Aging; directed by Don Ralya
1980
Unlocking Home Equity for the Elderly, edited by Ken Scholen
and Yung-Ping Chen, published by Ballinger (Cambridge, MA)
Two-year “Home Equity Conversion Project” funded by U.S.
Administration on Aging, directed by Ken Scholen
FHA reverse mortgage insurance proposal by Ken Scholen
endorsed by housing pre-conference to 1981 White House
Conference on Aging
Back to Top
1981
National Center for Home Equity Conversion (NCHEC)
incorporated as independent, non-profit organization in
Madison, WI; directed by Ken Scholen
U. S. House Select Committee on Aging hears first Cong-
ressional testimony on reverse mortgages, by Ken Scholen
White House Conference on Aging endorses proposal for FHA
RM insurance, recommending that “the FHA should develop an
insurance program for reverse mortgage loans”
Newsweek, Time, U.S. News, Good Morning America provide
first national media exposure for reverse mortgages
San Francisco RAM program closes first loans
1982
“National Potential for Home Equity Conversion” authored by
Bruce Jacobs (University of Rochester)
San Francisco RAM program expands to new sites in California,
directed by Bronwyn Belling
U. S. Administration on Aging funds NCHEC research on federal
issues - including FHA RM insurance
U. S. Senate Special Committee on Aging stages first hearing on
reverse mortgages; staffed by John Rother; testimony by Ken
Scholen, Jack Guttentag, Maurice Weinrobe, James Firman
U. S. Senate Special Committee on Aging issues report citing
need for reverse mortgage insurance
Garn-St. Germain Depository Institutions Act clears regulatory
path for reverse mortgages; first federal statutory recognition of
reverse mortgages
1983
Federal Council on Aging supports proposal for FHA reverse
mortgage insurance
FHA reverse mortgage insurance demonstration program
proposed by U.S. Department of Housing and Urban Develop-
ment (HUD) in housing bill
“RMs: Problems and Prospects for a Secondary Market and an
Examination of Mortgage Guaranty Insurance”, authored by
Maurice Weinrobe (Clark University)
“National Development Conference” sponsored by NCHEC with
HUD support in Washington, DC; greetings sent by President
Reagan and Representative Claude Pepper
U.S. Administration on Aging funds NCHEC information and
training project
“Home Equity Financing of Long-Term Care for the Elderly” by
Bruce Jacobs (University of Rochester) and William Weissert
(Urban Institute)
FHA insurance proposal by Sen John Heinz adopted by Senate;
House-Senate conference committee mandates HUD study
1984
First open-ended, risk-pooling reverse mortgage offered by
American Homestead in New Jersey
SF RAM program and NCHEC provide training and technical
assistance to new reverse mortgage programs in AZ, MA, NY, WI
Prudential-Bache announces marketing agreement with
American Homestead
Social Security Administration releases policy memo on treat-
ment of income from HEC plans
1985
HUD sponsors conference on home equity conversion
U. S. Senate & House Aging Committees sponsor joint briefing
session for Congressional staffers, moderated by Ken Scholen
Line-of-credit development project initiated by United Seniors
Health Cooperative (DC), directed by Bronwyn Belling
First “split-term” RM offered by CT Housing Finance Agency,
designed by Stuart Jennings and Arnold Pritchard
Back to Top
1986
“Home Equity Information Center” established by AARP,
directed by Katrinka Smith Sloan
American Homestead expands into CT, OH, and PA
California Home Equity Conversion Coalition established by
RAM program counselors
MA Elderly Equity Program funded by Commonwealth of
Massachusetts, directed by Len Raymond
HUD releases study opposing a federal reverse mortgage
insurance demonstration
AARP releases analysis by Ken Scholen critiquing HUD study;
AARP urges enactment of federal RM insurance demo
1987
NCHEC completes studies on home equity financing of long-term
care for Minnesota and Connecticut
U.S. House Ways and Means Committee hears testimony on
HEC and long-term care by James Firman (United Seniors) and
Ken Scholen (NCHEC)
Congress passes FHA reverse mortgage insurance proposal
American Homestead expands into DE, MD, and VA
“Home-Made Money: A Consumer Guide to HEC” published by
AARP, authored by Ken Scholen
1988
National survey of members’ reverse mortgage needs and
preferences by AARP
FHA reverse mortgage insurance legislation signed by President
Reagan on 2/5/88; Judith V. May named to develop program
HUD announces HECM development team including Edward
Szymanoski, Jr, Patrick Quinton, Donald Alexander, and
Mary Kay Roma
“Innovation in Hone Equity Conversion” conference sponsored
by AARP; attracts 200 participants from 25 states
New plan announced by Capital Holding Corporation (Louisville,
KY); 10th largest investor-owned insurance company in America;
“Home Income Security Plan” first offered in KY, MD, and VA
First line-of-credit reverse mortgage developed by VA Housing
Development Authority
American Homestead expands into CA
Providential Home Income Plan (San Francisco) offers
shared-appreciation plan throughout CA
HUD releases proposed regulations for FHA reverse mortgage
insurance program
Fannie Mae announces intention to purchase reverse mortgages
insured by FHA
U. S. Administration on Aging announces cooperative agreement
with HUD to sponsor training of reverse mortgage counselors
1989
“A Financial Guide to Reverse Mortgages” by Ken Scholen for
NCHEC introduces total loan cost rate method for analyzing costs
HUD selects 50 lenders by lottery to make first FHA-insured reverse
mortgages
Software for determining reverse mortgage loan advances
developed by FHA and made available to the public
Wendover Funding (NC) announces program for servicing
FHA-insured reverse mortgages
HUD releases “Home Equity Conversion Mortgage” (HECM)
program handbook (# 4235.1)
Fourteen 2-day HECM counselor training sessions conducted by
Bronwyn Belling (AARP) and Ken Scholen (NCHEC) for FHA
Capital Holding expands into CA and FL
FNMA announces policies for purchasing FHA-insured (HECM)
reverse mortgages
First FHA-insured HECM made to Marjorie Mason of Fairway,
KS by the James B Nutter Co
National Center for Home Equity Conversion (NCHEC) moves
from Madison, WI to Marshall, MN
1990
AARP releases FHA Counselor Training and Reference Manual,
by Bronwyn Belling and Ken Scholen
American Homestead and Providential suspend lending as
recession and falling appreciation expectations dry up debt
sources for new loans
Fourteen more 2-day counselor training sessions conducted by
Bronwyn Belling (AARP) and Ken Scholen (NCHEC) for HUD
“Reverse Angle” newsletter published for FHA counselors by
AARP Home Equity Information Center
Congress increases FHA insurance authority to 25,000 loans
by 9/31/95; requires disclosure of total loan cost & development
of equity reserve option
AARP publishes “Model State Law on Reverse Mortgages”
HUD publishes “FHA Home Equity Conversion Insurance
Demonstration: A Model to Calculate Borrower Payments and
Insurance Risk,” by Edward Szymanoski Jr.
Back to Top
1991
Los Angeles County Employees Retirement Association sponsors
information seminar on reverse mortgages as a potential fund
investment and member benefit
AARP publishes 3rd edition of “Home-Made Money” by Ken
Scholen; distribution tops 250,000
New consumer guide developed by Federal Trade Commission
in partnership with NCHEC and AARP
HUD publishes new regulations making reverse mortgage
insurance available to all FHA lenders
Interim report on FHA program by Judith V. May
Retirement Income On The House: Cashing In On Your
Home With A “Reverse” Mortgage, 352-page book by Ken
Scholen, preface by Jane Bryant Quinn published by NCHEC
National Leadership Conference on Home Equity Conversion
sponsored by AARP (9/91)
First lifetime reverse mortgage programs proposed by Peter
Mazonas of Homefirst (San Francisco) and Robert Bachman of
Home Equity Partners (Irvine, CA)
FNMA expands funding for expanded HECM program; develops
comprehensive “Instruction Package”
Wendover Funding announces correspondent program and
“starter kit” for lenders
First multi-state HECM lending programs developed by Interna-
tional Mortgage (DE, DC, MD, PA, VA, WV), Directors Mortgage
(AZ, CA, NV), and ARCS Mortgage (CA, HI, NY, OR, WA)
1992
Capital Holding Corporation airs 60-second and 120-second
prime-time network television ads in CA and FL for its
“Homearnings” plan
Initial public stock offering by Providential Home Income Plan
attracts strong investor interest
AARP publishes 79-page discussion paper on reverse mortgage
counseling by Ken Scholen
AARP releases videotape for counselor training written and
narrated by Ken Scholen
U. S. Securities & Exchange Commission issues directive
prohibiting interest accrual in reverse mortgage accounting
U. S. Securities & Exchange Commission rescinds previous
directive; issues directive on effective yield method for reverse
mortgage accounting
AARP sponsors community coalition-building seminars in
support of HECM development in OH, WI, IA, NY, NJ, PA, IL
Retirement Income On The House: Cashing In On Your
Home With A “Reverse” Mortgage named best book of 1992
on financial services for the elderly by the National Association
of State Units on Aging (NASUA)
HECM preliminary evaluation released by HUD
1993
Transamerica announces reverse mortgage product including
deferred annuity from MetLife
Fannie Mae convenes roundtable on developing a conventional
reverse mortgage
Capital Holding discontinues “Homearnings” plan
NCHEC prepares report on taxation of reverse mortgage
transactions for AARP
Home Equity Partners (Irvine, CA) & Union Labor Life announce
new “Freedom” plan including optional immediate annuity from MetLife
Wendover convenes 2-day conference of HECM originators
AARP sponsors community seminars in support of HECM
program development in CA, LA, MI, & MS
Fannie Mae initiates series of information sessions for financial
planners and elderlaw attorneys
Andrus Gerontology Center (USC) convenes national telecon-
ference on reverse mortgages
National Center for Home Equity Conversion (NCHEC) moves
from Marshall, MN to Apple Valley, MN
At year’s end, the HECM program is all states except AK, SD,
& TX); Unity Mortgage offers it in 25 states; Senior Income in
14 states; Directors Mortgage in 14 states; Amerifirst Mortgage in 9
states; ARCS Mortgage in 6 states; & International Mortgage in 4 states
1994
Household Senior Services offers “Ever Yours” creditline reverse
mortgage in FL, GA, IL, KY, MD, MI, OH, and VA
Congress enacts “total loan cost rate” disclosure requirement
for all reverse mortgages; Federal Reserve publishes proposed
regulations
NCHEC prepares report on “Reversing Foreclosures” for AARP
New York rescinds mortgage tax on reverse mortgages
U. S. Court of Appeals (5th Circuit; # 93-8170; First Gibralter V.
Morales) removes legal barrier to RM lending in Texas; Rep.
Gonzales legislates statutory override of court decision
CA Public Employees Retirement System (CALPERS) initiates
study of reverse mortgage investment
Transamerica introduces creditline plan and expands into NY,
NJ, PA, and CT
At year’s end, Unity Mortgage is offering the HECM in 42 states
and Director’s Mortgage has merged with Norwest Mortgage
1995
HUD releases “Evaluation of the Home Equity Conversion
Mortgage Insurance Demonstration”
HUD releases first major revision of HECM handbook 4235.1
HUD approves direct endorsement processing of HECM loans
NCHEC publishes Your New Retirement Nest Egg:
A Consumer Guide to the New Reverse Mortgages by Ken
Scholen, 336 pages
AARP publishes 5th edition of “Home-Made Money” by Ken
Scholen; distribution tops 400,000
HECM program lapses at end of federal fiscal year
AARP sponsors national conference on reverse mortgages
in MD on 11/14-15
Fannie Mae announces “HomeKeeper” plan; media coverage
includes front-page, above-the-fold article in USA Today
FHA Commissioner’s Award presented by Nicolas Retsinas to
Ken Scholen for his work on reverse mortgages
Back to Top
1996
HECM program re-authorized on January 26, 1996
Fannie Mae begins lender training for “Home Keeper”
NCHEC issues Second Edition of Your New Retirement Nest
Egg: A Consumer Guide to the New Reverse Mortgages
by Ken Scholen, 352 pages
Hartford Life tests annuity complement to HECM and Fannie
Mae reverse mortgages
HUD initiates counselor training via satellite TV
1997
AARP releases consumer videotapes written by Ken Scholen
featuring Scholen and Bronwyn Belling
AARP sponsors HUD counselor training via satellite TV featuring
Belling and Scholen
Referral fee scams denounced by AARP, HUD, Fannie Mae
Household Senior Services discontinues “Forever Yours” plan
AARP announces counselor support fund capitalized by HUD
and Fannie Mae
NCHEC initiates “preferred” lender and counselor program and
releases “Reverse Mortgage Counselor” software
Ibis Software (SF) releases “Reverse Mortgage Originator”
Texas approves referendum to permit RMs, but technical errors
make impact uncertain, problematic
AARP sponsors national reverse mortgage leadership round-
table and conference
National Reverse Mortgage Lenders Association (NRMLA)
organized by Jeffrey Taylor with Peter Bell as staff
1998
NCHEC circulates discussion papers on “Strengthening Cost
Disclosures on Reverse Mortgages” by Ken Scholen
AARP releases “HECM Training-in-a-Box” including videotapes,
workbook, HECM handbook, and counseling manual
Fannie Mae conducts market research to identify reverse
mortgage market segments
NCHEC publishes “Reverse Mortgages for Beginners:
A Consumer Guide to Every Homeowner’s Retirement
Nest Egg,” 132 pages
NCHEC establishes website at www.reverse.org
Transamerica HomeFirst (SF) discontinues originating its
proprietary “HouseMoney” loans and servicing new HECM
and HomeKeeper loans
Federal Reserve clarifies inclusion of annuities in TALC
disclosures
1999
Neighborhood Reinvestment Corporation (NRC) provides
HECM training in cooperation with AARP
Texas approves reverse mortgage lending in statewide
referendum but prohibits creditline choices preferred by
most consumers
Fannie Mae announce new consumer protections in
5/22 lender letter
NRMLA and AARP support absolute limit on origination
fees, refinancing reforms, and research on a single national
203b limit
AARP initiates test of HECM counseling by telephone
and develops reverse mortgage counselor exam in
cooperation with HUD, Fannie Mae, and NRMLA
2000
First national reverse mortgage counseling exam is
taken by 425 counselors in 43 states
NRC provides 2-day HECM training in Atlanta, Minneapolis,
Oakland, Tampa, New Orleans, and San Antonio
AARP completes “Model Specifications for Comparing
Reverse Mortgages;” Financial Freedom and Fannie Mae
agree to develop new software implementing the specifications
Congress approves absolute limit on origination fees, refi-
nancing reforms, and research on a single national 203b limit
Fannie Mae discontinues “equity share” pricing option
AARP Foundation selects 30 HECM counselors to participate
in HUD-supported pilot “telecounseling” project
Financial Freedom becomes largest reverse mortgage
originator via merger with Unity Mortgage
2001
AARP releases new 68-page consumer guide, creates
new reverse mortgage portal at www.aarp.org/revmort/,
announces new tollfree consumer infoline and availability
of HECM counseling by telephone
Fannie Mae announces it will waive the equity share fee
on all loans in its Home Keeper portfolio
Financial Freedom releases counseling software meeting
AARP model specifications
