What is the common abbreviation for the Home Equity Conversion Mortgage?

• A. HECM
• B. HMDA
• C. ECOA
• D. TILA

Answer: (A)

The main idea is identifying the standard shorthand for a specific loan product. The common abbreviation for the Home Equity Conversion Mortgage is HECM. This stands for Home Equity Conversion Mortgage and is the term you’ll see used in FHA/HUD materials, lender disclosures, and industry discussions about reverse mortgages. It’s a specialized product designed for seniors (typically 62+) that lets them convert part of their home equity into cash while remaining in the home, with the loan secured by the FHA insurance program.

The other acronyms refer to different things: HMDA relates to data collection under the Home Mortgage Disclosure Act, ECOA is the Equal Credit Opportunity Act, and TILA is the Truth in Lending Act. None of these are the abbreviation for the reverse mortgage product, so they’re not the correct shorthand here.