Morningstar DBRS assigned provisional ratings to the notes, with the senior Class A notes rated AAA and subordinate tranches rated from AA (low) to BBB (high). The ratings reflect the deal's sequential structure, credit enhancement from subordinate bonds, and stress testing tied to home-price declines, borrower longevity and interest rates. About two-thirds of the collateral is concentrated in California, with borrowers averaging 76 years old. The loans are nonrecourse, meaning losses are capped at the value of the underlying homes.
But as the lawsuit continues to play out, Massachusetts is no longer listed among the states the company does business in. The suit in Massachusetts is similar in nature to a case filed in Washington state against fellow HEI provider Unison. An appellate court recently ruled in favor of the plaintiffs and determined that Unison's product was a reverse mortgage under state law. Unison initially sought to appeal that decision but settled with the plaintiffs shortly thereafter.
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.
