Proprietary Reverse Mortgages Jump 245% in 2 Years as Higher Rates Crimp HECMs
Updated
Updated · HousingWire · Jul 29
Proprietary Reverse Mortgages Jump 245% in 2 Years as Higher Rates Crimp HECMs
1 articles · Updated · HousingWire · Jul 29
Summary
$3.8 billion in proprietary reverse mortgages were originated in 2025, up from $1.1 billion in 2023, helping lift total reverse mortgage volume to $9.65 billion from $6.25 billion.
6,979 private-label loans were made in 2025 versus 1,774 in 2023, while HECM counts edged up only about 6% to 24,850, showing growth is coming from proprietary products rather than government-insured loans.
Higher rates are hitting HECMs harder because their upfront mortgage insurance premium is tied to the maximum claim amount; for homes near the $1,249,125 limit, that cost can approach $25,000 even as borrower proceeds shrink.
First-half 2026 data suggests the split is widening: New View projects HECM originations could slip back to 2023 levels this year while proprietary volume challenges its 2022 record.
22% of all reverse mortgage originations in 2025 were proprietary, according to MBA data, and new tech integrations from Reverse Market Insight and REVERSE plus are expanding brokers' ability to quote and sell those loans.