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Proprietary reverse mortgages drive volume growth as HECMs stall
Industrywide reverse mortgage volume rose to $9.65 billion in 2025, with proprietary loan amounts up about 245% since 2023 while HECM volume grew far more slowly.
Proprietary reverse mortgages are accounting for most of the recent growth in the reverse mortgage market, while FHA-insured Home Equity Conversion Mortgages remain comparatively sluggish, according to an analysis of Home Mortgage Disclosure Act data by New View Advisors published via HousingWire.
Total reverse mortgage volume increased from $6.25 billion in 2023 to $9.65 billion in 2025. Proprietary reverse mortgage volume rose from $1.1 billion in 2023 to $3.8 billion in 2025, an increase of roughly 245%, compared with about 54% growth for the overall reverse market.
The shift is also evident in loan counts. Private-label reverse mortgages grew about 293% from 1,774 units in 2023 to 6,979 units in 2025, while HECM counts moved from 23,358 in 2023 to 24,850 in 2025, a gain of about 6% over the two-year period.
New View’s first-half 2026 data suggests the trend is continuing, with the firm projecting HECM originations could fall back to 2023 levels this year while proprietary volume could challenge record 2022 levels. The analysis points to higher interest rates as a key factor, noting that the HECM upfront mortgage insurance structure can weigh more heavily on proceeds as rates rise.