Proprietary Reverse Mortgages Gain Market Share
Proprietary reverse mortgages have been expanding their presence, capturing 40% of the reverse mortgage market in September 2025, just before Home Equity Conversion Mortgage (HECM) endorsements were paused.
Earlier in the year, lenders began diversifying their offerings by launching or expanding proprietary product lines, a shift that gained significance as federally insured reverse mortgages faced endorsement suspensions.
New View Advisors' Quarterly Index Launch
In line with this industry development, New View Advisors will publish a quarterly index tracking proprietary reverse mortgage production. The index uses data from public and private sources such as financial reports, rating agency documents, and securitization details related to proprietary products.
Production and Market Data for 2025
- New View’s Proprietary Reverse Mortgage Production Index estimates $650 million originated in proprietary products during Q3 2025 (July–September).
- Total proprietary volume for the first nine months of 2025 reached $1.8 billion.
- By comparison, HECM volume for the same period was $3 billion.
- For September 2025 alone, proprietary loans amounted to $210 million, while HECMs totaled $310 million.
"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."
Summary: Proprietary reverse mortgages have steadily increased market share in 2025, driven by product diversification and pauses in federally insured HECM endorsements.