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Reverse mortgage lending stays constrained for the rest of 2026
June HECM originations rose to 2,064 loans but remain down nearly 10% year to date as elevated mortgage rates limit how much equity seniors can access.
HousingWire reports reverse mortgage professionals expect the second half of 2026 to remain difficult as elevated rates constrain the equity Home Equity Conversion Mortgage (HECM) borrowers can access.
Reverse Market Insight data cited by HousingWire shows June HECM originations increased to 2,064 loans, up 6% from May, but down more than 8% versus June 2025, leaving year to date volume down nearly 10%.
HousingWire also quotes industry leaders describing the current lending environment as among the toughest they have seen. Shain Urwin, national reverse mortgage director for C2 Financial, said the ability to access equity will likely get harder in the latter half of the year, with 2026 expected to be one of the toughest lending years.
HousingWire says demand has stabilized compared with last year, but borrowers have not seen immediate improvement in conditions, with one industry view that the HECM market will likely remain steady rather than meaningfully expand. Kristy Osborn of Fairway Independent Mortgage Corp said relative to 2024, borrowers are starting to come back around after a rate-driven lag that affects how much older homeowners can tap.