Academic journal article Cityscape

The HECM Program in a Snapshot

Academic journal article Cityscape

The HECM Program in a Snapshot

Article excerpt

Correction

The volume 19, number 1 issue of Cityscape contained errors in exhibit 6 and on pages 123 through 125. The corrected discussion follows.

FHA Administrative Data

In this section we use FHA administrative data to specifically examine HECM originations. The first HECM loan was originated in 1989 as a pilot program that was not made permanent until 1998 (Szymanoski, Enriquez, and DiVenti, 2007). The number of HECM loans originated during the 1990s was relatively low, with annual endorsements not exceeding 10,000 until 2002. Exhibit 5 shows the number of HECM originations from 2002 to 2015.

From 2002 to 2008, HECM originations increased from slightly less than 15,000 loans to the peak of about 115,000 loans. After the peak, the number of originations fell to an annual average of around 58,000 loans from 2011 to 2015. Although not included in exhibit 5, the number of loans originated during the first half of 2016 was 21,000, which is slightly less than the recent 5-year annual average.

The 2015 American Community Survey estimates that nearly 27.6 million homeowner households in which the household head was at least 62 years of age. …

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