The reverse mortgage loan is a government inspired mortgage product designed to help elderly homeowners tap into their home equity with out the risk of losing their home.
HUD administered the program starting in the late 1980's. This was done through the Housing and Community Development Act of 1987
Initially a test run was approved in which 2500 mortgage insurance policies were authorized for issue. Three years later in 1990 which was actually closer to 1991 the Omnibus Budget Reconciliation Act of 1990 expanded and set in motion the modern day system used to insure reverse mortgage loans with FHA mortgage insurance.
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