Proprietary Reverse Mortgages Gain Market Share
Proprietary reverse mortgages have been steadily increasing their presence in the market, accounting for 40% of the market share in September 2025, just before the pause on HECM endorsements.
Diversification of Offerings
Earlier this year, reverse mortgage lenders began diversifying by launching or expanding proprietary product suites. This strategy has become critical as federally insured reverse mortgages are currently not being endorsed.
New View Advisors’ Quarterly Index
New View Advisors recently announced plans to publish a quarterly index tracking the production of proprietary reverse mortgages. This index uses data from public and private sources, including financial statements, rating agency reports, and securitization information.
Production and Market Data for 2025
- For Q3 2025, lenders originated approximately $650 million in proprietary reverse mortgage products.
- In the first nine months of 2025, proprietary volume reached $1.8 billion, while Home Equity Conversion Mortgages (HECM) volume was $3 billion.
- Proprietary loans totaled an estimated $210 million in September 2025, compared to $310 million for HECMs.
- Proprietary reverse mortgages accounted for 40% of the market in September and 37.5% for the first three quarters of 2025.
"Proprietary loans represented 40% of the reverse mortgage market in September and 37.5% for the first three quarters of the year."
Author's summary: Proprietary reverse mortgages are rapidly expanding, now comprising a significant share of the market amid changes in federally insured endorsements.