Proprietary Reverse Mortgages Gain Market Share
Proprietary reverse mortgages have been steadily increasing their presence, accounting for 40% of the market in September 2025, just before the pause on Home Equity Conversion Mortgages (HECM) endorsements.
Earlier in the year, reverse mortgage lenders began diversifying by launching or expanding proprietary product lines, a strategy that has become crucial as federally insured reverse mortgages face endorsement suspensions.
Industry Trends and New Data
New View Advisors recently announced the launch of a quarterly index tracking proprietary reverse mortgage production. This index compiles data from public and private sources such as financial statements and rating agency reports, focusing on the securitization of these proprietary products.
"New View’s Proprietary Reverse Mortgage Production Index for Q3 2025 estimates $650 million in proprietary product originations from July through September."
For the first nine months of 2025, proprietary reverse mortgage volume reached $1.8 billion, compared to $3 billion in HECM volume.
In September 2025 alone, proprietary loans totaled an estimated $210 million, while HECMs amounted to $310 million. This data shows proprietary loans captured 40% of the reverse mortgage market in September and 37.5% over the first three quarters of the year.
Summary of Market Share in 2025
- Q3 2025 proprietary originations: $650 million
- Proprietary volume January–September 2025: $1.8 billion
- HECM volume January–September 2025: $3 billion
- September 2025 proprietary loans: $210 million
- September 2025 HECM loans: $310 million
- Market share of proprietary loans in September 2025: 40%
- Proprietary market share for first three quarters of 2025: 37.5%
New View’s quarterly index offers valuable insights into the growing role of proprietary reverse mortgages as alternatives to federally insured options.
Author’s summary: Proprietary reverse mortgages are capturing a significant and growing share of the market, reflecting lender diversification amid challenges in federally insured reverse mortgage endorsements.