Proprietary Reverse Mortgages Gain Market Share
Proprietary reverse mortgages are increasingly capturing a larger portion of the market, accounting for 40% in September 2025, just before the pause on Home Equity Conversion Mortgage (HECM) endorsements.
Earlier in the year, reverse mortgage lenders began diversifying their products by launching or expanding proprietary offerings. This strategy has become crucial while federally insured reverse mortgages face endorsement suspensions.
New View Advisors Introduces Quarterly Index
Reflecting this trend, New View Advisors announced a new quarterly index to track proprietary reverse mortgage production. The index compiles data from various public and private sources, such as financial statements and rating agency reports related to the securitization of these loans.
Production Data for 2025
- In Q3 2025, lenders originated approximately $650 million in proprietary reverse mortgages.
- For the first nine months of 2025, the proprietary volume reached $1.8 billion, compared to $3 billion for HECM volume.
- In September alone, proprietary loans amounted to $210 million, while HECMs totaled $310 million.
"Based on that data, proprietary loans represented 40% of the reverse mortgage market in September and 37.5% for the first three quarters of the year."
These figures emphasize the growing significance of proprietary reverse mortgages in the current market landscape.
Author's Summary
Proprietary reverse mortgages are rapidly increasing their market share, becoming a vital alternative amid the suspension of federally insured reverse mortgage endorsements.