History of Reverse Mortgages
In 1961, the first reverse mortgage was granted to Portland, Maine resident Nellie Young, a recent widow struggling to make ends meet. She was graced by the generosity of Nelson Haynes, an employee of Deering Savings and Loan, who created this loan specifically for her. Initially a simple act of kindness, this type of financing revolutionized the mortgage industry by allowing homeowners to remain comfortable in their homes through the utilization of available equity.
It wasn’t until 1977 that Broadview Savings and Loan president Arlo Smith developed and publicly offered the Equi-Pay Loan in Cleveland, OH, and it was another two years before the Wisconsin Department of Development’s Neighborhood Conservation Program developed their own deferred payment loan program