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Administration on Aging (AoA)

Home Equity Conversion Mortgage (HECM) Program

The Role of the Aging Network in Assisting Older Mortgagees

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HECM Basics

Home Equity Conversion Mortgages (HECM) are reverse mortgages insured by the HUD Federal Housing Administration (FHA). Only homeowners age 62 and older are eligible to participate in the HECM program. These reverse mortgages have been attractive to older adults for a number of reasons.

  • Older adults with few assets aside from their home can tap into their equity to help them age in place
  • Borrowers can live in the home as long as they want without making any monthly payments, aside from property costs such as property taxes and insurance
  • Borrowers never owe more than the value of the house if sold at the time the loan comes due. Heirs who want to keep the house pay the full loan amount

The purpose of this page is to provide information to Aging Network organizations, as well as to consumers, regarding HECM mortgage holders who may be delinquent in paying property costs and in jeopardy of default. Find general information on HUD HECM reverse mortgage program for older individuals.

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HECM Borrowers and Delinquent Property Cost Payments

Under the HECM program property taxes, insurance and other property charges are the responsibility of the homeowner. Lenders have advanced property tax, insurance and other property charges to borrowers who were unable to pay them. HUD is now requiring lenders to try to collect these advances and older borrowers who are unable to repay these advances may be in jeopardy of mortgage default or losing their home.

Five HUD Housing Counseling agencies have been selected to provide counseling to HECM clients that receive a delinquency letter. These agencies and their toll free numbers have been included in the letter delinquent borrowers will receive. Housing Counselors will work with borrowers to assist them in resolving their delinquency. Some older borrowers may need assistance beyond what Housing Counselors are able to provide.

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Role of the Aging Network

The Aging Network will have an important role to play in assisting HECM borrowers who are delinquent. AAAs and other aging providers can assist borrowers in trouble to find solutions, including public benefits to help them pay taxes and insurance so they can stay at home. Many borrowers may benefit from case management services to assist them in maximizing their finances and using them wisely. Others may need assistance in finding other housing and in transitioning out of the home.

To effectively assist these individuals, it is important that aging providers fully understand the problem and how they can assist. This web page is designed to provide easy access to key resources for Aging Network providers working with HECM borrowers in need of assistance.

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Below you will find links to resources that we hope you will find helpful in your work with HECM borrowers. As new resources are developed they will be added below.

HECM Basics

  • The following PowerPoint was delivered at the 2010 n4a conference and provides information about the HECM program and the role of the Housing Counselor. HECM Basics (PPT, 1.31MB)

HECM Delinquency Resources

Related Resources

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Last Modified: 9/25/2015