Proprietary Reverse Mortgages Increase Market Share
Proprietary reverse mortgages gained significant traction, making up 40% of the market in September 2025, just before endorsements for Home Equity Conversion Mortgages (HECM) were paused. Earlier this year, lenders began diversifying their products by launching or expanding proprietary reverse mortgage offerings.
This diversification has become crucial as federally insured reverse mortgages face endorsement suspensions.
Industry Developments and Data Tracking
New View Advisors recently announced the launch of a quarterly index that tracks proprietary reverse mortgage production. The index compiles data from various public and private sources, including:
- Financial statements
- Rating agency reports
- Information related to securitization of proprietary reverse mortgages
Production Estimates for 2025
New View’s Proprietary Reverse Mortgage Production Index for Q3 2025 estimates that lenders originated $650 million in proprietary reverse mortgage products from July through September.
For the first nine months of 2025, proprietary volume reached $1.8 billion, compared to $3 billion in HECM volume.
September 2025 Loan Breakdown
In September alone, proprietary loans totaled approximately $210 million, while HECMs amounted to $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 trends indicate a rising importance of proprietary products in the reverse mortgage sector amidst federal endorsement pauses.
Summary: Proprietary reverse mortgages gained significant market share in 2025, highlighting lenders' strategic shift amid federal endorsement suspensions of HECMs.