Proprietary reverse mortgages gain market share

"New View's Proprietary Reverse Mortgage Production Index for the third quarter of 2025 estimates that lenders originated $650 million in proprietary products from July through September. Additionally, through the first nine months of this year, there has been $1.8 billion in proprietary volume, compared to $3 billion in Home Equity Conversion Mortgages (HECM) volume. For September 2025 alone, New View estimated that proprietary loans totaled $210 million, compared to $310 million for HECMs."

"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. Proprietary loans once accounted for a tiny fraction of the market. A report released by the Federal Reserve in 2009 noted that due to the current financial crisis, the private reverse mortgage market has evaporated so that HECM loans represent nearly 100% of the U.S. reverse mortgage market."

"By 2022, proprietary had loans achieved a market share of 15%. This trend is likely to continue for the foreseeable future due to the current lack of HECM endorsements. The Federal Housing Administration (FHA) is not processing federally insured reverse mortgages during the ongoing government shutdown. At last month's annual meeting of the National Reverse Mortgage Lenders Association (NRMLA), a panel discussion touched on the demand for HECM products, which has plummeted 69% since 2022."

Proprietary reverse mortgage originations totaled $650 million in Q3 2025 and $1.8 billion year-to-date, compared with $3 billion in HECM volume through nine months. In September 2025 proprietary loans were $210 million versus $310 million for HECMs, representing roughly 40% market share for the month and 37.5% year-to-date. Proprietary products expanded from a negligible share after the 2009 financial crisis and reached about 15% by 2022. Growth continues amid limited HECM endorsements as the FHA halted processing during the government shutdown and HECM demand has fallen sharply, prompting HUD to seek feedback on program futures.

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