Proprietary Reverse Mortgages Gain Market Share
Proprietary reverse mortgages are increasingly popular, 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 because federally insured reverse mortgages are not currently being endorsed.
New Index Tracks Proprietary Reverse Mortgage Production
New View Advisors announced a quarterly index to monitor proprietary reverse mortgage production. The index compiles data from public and private sources, including financial statements, rating agency reports, and securitization information related to proprietary reverse mortgages.
Third Quarter 2025 Data
- Lenders originated approximately $650 million in proprietary reverse mortgages from July to September.
- Through the first nine months of 2025, proprietary reverse mortgage volume reached $1.8 billion.
- During the same period, HECM volume was $3 billion.
- For September 2025, proprietary loans totaled $210 million, while HECMs amounted to $310 million.
Proprietary loans thus accounted for 40% of the reverse mortgage market in September and 37.5% for the first three quarters of 2025.
"Proprietary reverse mortgages represented 40% of the market in September and 37.5% for the first three quarters of the year," said New View Advisors in their Proprietary Reverse Mortgage Production Index for Q3 2025.
Author's summary: Proprietary reverse mortgages are rapidly expanding their market share amid paused HECM endorsements, reflecting significant diversification in reverse mortgage options in 2025.