| Description: | This report provides an evaluation of the Home Equity Conversion Mortgage (HECM) Program. As mandated by Section 255(k) of the National Housing Act and amended by Section 417 of the Housing and Community Development Act of 1987 (P.L. 100-242), the Department of Housing and Urban Development is required to periodically report to Congress on the HECM Program. This report represents the final in a series of mandatory reports to Congress on the demonstration phase of the HECM program, which became a permanent HUD program in 1998. Previous evaluation reports were transmitted to Congress in 1992 and 1995. The main findings of this report are that the demonstration phase of HECM has generally been a success, with loan volumes growing, borrowers reporting high levels of satisfaction with the program, premium collections projected to exceed insurance claims by more than $500 per loan, and a trend toward lower average costs paid by borrowers to originate a HECM loan. |
