Proprietary Reverse Mortgages Gain Market Share
Proprietary reverse mortgages are steadily expanding and accounted for 40% of the market in September 2025, just before the temporary halt of HECM endorsements. Earlier this year, many lenders began to broaden their product lines by introducing or enlarging proprietary mortgage options.
These developments have become increasingly significant while federally insured reverse mortgages remain on pause. Reflecting this trend, New View Advisors announced the launch of a quarterly index to measure the output of proprietary reverse mortgage production.
“The index draws on data from public and private sources, including financial statements, rating agency analyses, and securitization details,” reported New View Advisors.
According to New View’s Proprietary Reverse Mortgage Production Index for Q3 2025, lenders originated an estimated 650 million dollars in proprietary products from July through September. Over the first nine months of the year, proprietary volume reached 1.8 billion dollars, compared with 3 billion dollars in Home Equity Conversion Mortgages (HECMs).
In September 2025 alone, proprietary loans totaled 210 million dollars, while HECMs reached 310 million dollars. This means proprietary loans represented 40% of the reverse mortgage market that month and 37.5% for the first three quarters of the year.
Author’s Summary
Proprietary reverse mortgages continue to expand their presence, reaching a 40% market share by late 2025 amid a slowdown in federally insured mortgage endorsements.