A HECM is a government-insured reverse mortgage backed by HUD and the FHA. It accounts for roughly 99% of all reverse mortgages in the United States. The key feature is the federal guarantee that protects borrowers.
About 99% of all reverse mortgages today are done under the HECM program. Basically, the Home Equity Conversion Mortgage is the reverse mortgage program that is insured by HUD. That is the Housing and Urban Development through the FHA, which is the Federal Housing Administration. So the HECM is the abbreviation for Home Equity Conversion Mortgage, and that's the official name of the program that is insured. And about 99% of all reverse mortgages today are done under the HECM program. What sets it apart is it really that it's insured and guaranteed by the government, the, the good faith of the United States government.
