Here’s another example of how proprietary loans are driving growth for the reverse mortgage market

Proprietary reverse mortgages, rather than government-insured Home Equity Conversion Mortgages (HECMs), are driving the reverse mortgage industry’s recent growth, according to an analysis of Home Mortgage Disclosure Act (HMDA) data published Wednesday by New View Advisors.

Total reverse mortgage volume rose from $6.25 billion in 2023 to $7.51 billion in 2024 and $9.65 billion in 2025, New View Advisors said, citing HMDA data published by the Consumer Financial Protection Bureau (CFPB) and the Federal Financial Institutions Examination Council (FFIEC).

Proprietary reverse mortgages accounted for most of that expansion, growing from $1.1 billion in 2023 to $3.8 billion in 2025 — a roughly 245% increase over two years compared with about 54% growth for the overall reverse market.

Trend driven by higher rates, mortgage insurance hurdle

Loan counts show an even sharper shift toward proprietary products. Private-label reverse mortgages increased from 1,774 units in 2023 to 3,212 in 2024 and 6,979 in 2025. Over the same period, HECM volume was flat, with unit counts of 23,358, 24,648 and 24,850, respectively, equating to a gain of about 6% in two years.

New View’s first-half 2026 data suggests the trend is continuing. On an annualized basis, the firm projects HECM originations could fall back to 2023 levels this year while proprietary volume could challenge the record levels posted in 2022 for that product type.

The shift comes as all mortgage lenders face a difficult interest rate environment. Higher rates are expected to hit HECM products harder than proprietary offerings due to the upfront mortgage insurance structure of HECMs.

The initial mortgage insurance premium on a HECM is calculated as a percentage of the maximum claim amount, which is the lesser of the property value or the 2026 maximum loan amount of $1,249,125. As interest rates rise, borrowers receive lower HECM proceeds, but the upfront mortgage insurance expense — often close to $25,000 for homes at or above the claim limit, and well into five figures for most other borrowers — remains fixed against the maximum claim amount rather than the actual available proceeds.

For originators and secondary market issuers, that math can make proprietary reverse mortgages more competitive in a higher-rate cycle, particularly for higher-value homes, even as overall demand is pressured by borrowing costs.

More tech options to serve prop loans

Proprietary reverse mortgages are not new to the market but have become more relevant in the past few years. New View noted that volume was minimal from 2010 to 2017, when proprietary products were reintroduced, after an earlier run that included five securitizations from Lehman Brothers between 1999 and 2007. Proprietary originations peaked in 2022 during the lower-rate period following the COVID-19 pandemic.

The HMDA data also points to an emerging but still small niche in second-lien proprietary reverse mortgages. These loans grew from a handful in 2022 to 69 in 2023, 376 in 2024 and 658 in 2025, with an initial principal limit of $148 million last year.

New View’s report also arrived shortly after a similar analysis of HMDA data conducted by the Mortgage Bankers Association. The MBA found that proprietary products represented 22% of all reverse mortgage originations in 2025 — more than triple their 7% market share in 2023 and well above their 14% share in 2022, when a record 8,359 private-label loans were originated.

Reverse mortgage brokers have been receiving a boost in prop loan originations through additional technology offerings.

Earlier this month, Reverse Market Insight expanded its Reverse Qualifier tool to include Smartfi Home Loans‘ private-label Choice product. The tool is designed for use by loan officers, closed loan sellers and HECM Mortgage-Backed Securities (HMBS) issuers.

In April, REVERSE plus announced a similar integration, adding the Smartfi prop loan product to its ANALYZER Pro platform alongside existing capabilities for HECM scenarios.

This article was written by Neil Pierson with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.