Proprietary Reverse Mortgages Increase Market Share
Proprietary reverse mortgages are gaining momentum, accounting for 40% of the market in September 2025, shortly before endorsements for Home Equity Conversion Mortgages (HECM) were paused.
Industry Diversification
Earlier in 2025, reverse mortgage lenders started expanding their portfolios by launching or broadening proprietary product suites. This strategy proved vital as federally insured reverse mortgages faced endorsement halts.
New View Advisors Quarterly Index
New View Advisors announced it would publish a quarterly index to track proprietary reverse mortgage production. The index compiles data from public and private sources, including financial statements, rating agency reports, and securitization information.
New View’s Proprietary Reverse Mortgage Production Index for Q3 2025 estimated that lenders originated $650 million in proprietary products from July through September.
Market Volume Comparisons
- In the first nine months of 2025, proprietary products reached $1.8 billion in volume.
- HECM volume for the same period was $3 billion.
- For September 2025 alone, proprietary loans totaled $210 million versus $310 million for HECMs.
- Proprietary reverse mortgages made up 40% of the reverse mortgage market in September and 37.5% for the first three quarters of 2025.
Author's summary: Proprietary reverse mortgages have significantly increased their market share in 2025, offering a growing alternative amid paused federal reverse mortgage endorsements.