Reverse Mortgage Glossary

Definitions for HECM, proprietary reverse mortgage, LESA, principal limit, non-recourse, and maturity events.

Reverse Mortgage Glossary
HECM
Home Equity Conversion Mortgage. A reverse mortgage insured by the Federal Housing Administration.
Proprietary Reverse Mortgage
A private reverse mortgage offered by a private lender rather than the FHA-insured HECM program.
Principal Limit
The amount of proceeds available under reverse mortgage program calculations before liens, fees, set-asides, or other requirements.
Non-Recourse
A feature commonly associated with HECM loans where repayment is limited by program rules tied to the home value. Exact treatment depends on program rules and facts.
LESA
Life Expectancy Set-Aside. Funds set aside in some reverse mortgage cases to help pay property charges such as taxes and insurance.
Maturity Event
An event that causes the reverse mortgage to become due and payable, such as death, sale, move-out, or failure to meet loan terms.
Counseling Certificate
Documentation that required reverse mortgage counseling has been completed.

Reviewed by Nick Cunningham, NMLS #907393. Educational content only, not personal financial, legal, tax, or benefits advice.