Proprietary reverse mortgages gain market share in 2025

"New View Advisors, which released its initial quarterly index at the end of October, estimated that private-label loans started 2025 with a market share of about 30%. Based on volume in December, that figure grew to represent 45% of originations. The company compiles the report from public and private sources, including financial statements, ratings agency reports and other data related to proprietary reverse mortgage securitizations."

"The growth in the proprietary market coincides with some key concerns facing the HECM market. In October, the U.S. Department of Housing and Urban Development (HUD) issued a request for information (RFI) about the HECM program and its secondary market companion, the HECM Mortgage-Backed Securities (HMBS) program. The RFI initially included a Dec. 1 deadline for comments, which was later extended to Jan. 5. Many reverse mortgage market stakeholders including New View offered their thoughts on how to improve the programs,"

"Among the recommendations by the advisory firm were lower upfront mortgage insurance premiums, streamlined HECM options that match up better with proprietary loans and the potential removal of borrower counseling requirements if the HECM program were simplified. The National Reverse Mortgage Lenders Association (NRMLA) has also publicized its desire for lower mortgage insurance costs. The trade group estimated that about 25% of potential HECM originations have been lost since the FHA eliminated risk-based pricing in late 2017."

New View Advisors estimated private-label reverse mortgage market share rose from about 30% at the start of 2025 to 45% of originations in December. The company compiles its index from public and private data including financial statements, ratings agency reports and proprietary securitization data. Growth in the proprietary market coincided with concerns surrounding the HECM program and HMBS secondary market. HUD issued an RFI with its comment deadline extended to Jan. 5. Stakeholders proposed reforms including lower upfront mortgage insurance premiums, streamlined HECM options aligned with proprietary products, and potential removal of counseling requirements if the program is simplified. NRMLA estimated a 25% loss in potential HECM originations since late 2017.

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