Proprietary Reverse Mortgages Gain Market Share
Proprietary reverse mortgages are showing notable growth, making up 40% of the market in September 2025, right before the suspension of HECM endorsements. Earlier in the year, lenders began broadening their product lines with new or enhanced proprietary options, a move that has become even more critical since federally insured reverse mortgages are not currently being endorsed.
Industry Developments
As part of this trend, New View Advisors launched a quarterly index to monitor proprietary reverse mortgage production. The index draws on data from public and private sources such as financial statements, rating agency reports, and securitization records.
New View’s Proprietary Reverse Mortgage Production Index for Q3 2025 estimated $650 million in proprietary originations between July and September.
During the first nine months of 2025, proprietary reverse mortgages reached $1.8 billion in total volume, while Home Equity Conversion Mortgages (HECMs) hit $3 billion. In September alone, proprietary loans totaled $210 million, compared to $310 million in HECM loans.
Based on this data, proprietary loans accounted for 40% of the reverse mortgage market in September and 37.5% across the first three quarters of 2025.
Author’s Summary
Proprietary reverse mortgages are taking a growing share of the market as lenders expand product choices and federal endorsements pause, signaling an industry shift toward private alternatives.