First Cal history

During the first congressional hearing concerning reverse mortgages in 1983, the Senate approves a proposal by Senator John Heinz to have reverse mortgages insured by the Federal Housing Administration (FHA). Heinz also suggests that the idea of home equity conversion should be further explored.

In 1984, American Homestead sets the foundation for government-insured reverse mortgages when it unveils the Century Plan, which is the first mortgage that keeps the loan in place until a borrower permanently leaves the residence.

In 1989, the first FHA-insured Home Equity Conversion Mortgage (HECM) is issued to Marjorie Mason of Fairway, Kansas by the James B. Nutter Company of Kansas City, Missouri.

In 1990, the HECM program has its 1 year anniversary, with HUD reporting to Congress that the program is steadily growing.

In 1994, Congress begins requiring lenders to disclose to borrowers the total annual loan costs at the start of the application process.

In 1996, the reverse mortgage program is adjusted to allow for loans on residences that have up to four units as long as the borrower occupies one unit as their primary residence.

In 1997, HECM reverse mortgage lender participation is at its highest number at 195.

Three years later, Headlands was taken public (NASDAQ: HDLD) prior to being sold to GreenPoint Mortgage in 1999.

In 2000, HUD announces an increase in origination fees to either 2% of the Maximum Claim Amount, or $2000.

In 2004, the FHA implements rules of HECM refinancing.

In 2006, the national loan limit of $417,000 is established.

In 2009, The HECM for Purchase is introduced.

In 2017, the loan limit for HECM reverse mortgage loans increased from $625,500 to $636,150.