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Proprietary reverse mortgages gained share in 2025, MBA says
MBA analysis of HMDA data shows proprietary reverse products reached 22% of 2025 originations and nearly 40% of dollar volume, while HECM volume rose just 0.7% in 2025.
The Mortgage Bankers Association found that proprietary reverse mortgages accelerated in 2025, with their share rising to 22% of all reverse mortgage originations, according to HousingWire’s coverage of MBA’s analysis of Home Mortgage Disclosure Act data. MBA compared Federal Housing Administration insured Home Equity Conversion Mortgages, known as HECMs, with proprietary reverse products from private lenders. It reported that HECM volume grew 0.7% in 2025, while proprietary originations jumped 118% over the same period.
The analysis also showed that reverse mortgage volume fell sharply after 2021 and 2022, with total originations dropping 57% to 25,312 loans in 2023. In that year, 93% of originations were HECMs and 7% were proprietary reverse mortgages, before proprietary share expanded to 22% in 2025. MBA noted the rise coincides with an increase in opportunities for older homeowners to tap housing wealth while aging in place, pointing to Federal Reserve data that accumulated home equity is near $35 trillion. It also said proprietary reverse mortgages typically involve larger loan balances, which helped them account for nearly 40% of reverse mortgage originations by dollar volume in 2025.
MBA cited HMDA-reported $5.8 billion in HECM originations during 2025 and said Home Equity Conversion Mortgage Backed Securities issuance totaled about $4 billion. The association attributed the gap to HMDA reporting the initial principal limit, while HMBS data reflects actual loan balances.