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Proprietary reverse mortgages overtake HECMs in Q1 2026 volume
First-quarter 2026 originations for proprietary reverse mortgages totaled an estimated $953 million, beating HECM volume of about $875 million, while the article flags limited fee caps outside the FHA program.
Proprietary reverse mortgages are gaining ground as a growing share of the reverse-mortgage market, with originations estimated to have surpassed FHA-insured Home Equity Conversion Mortgages (HECMs) in the first quarter of 2026, HousingWire reports.
HousingWire cites New View Advisors data showing proprietary reverse mortgage originations reached an estimated $953 million during Q1 2026, compared with approximately $875 million for HECMs. The piece frames the shift as a sign of expanding options for older homeowners, including cases where proprietary programs can serve higher-value properties, eligibility beginning at age 55 in certain states, and situations outside FHA guidelines.
The article also highlights consumer-protection concerns tied to pricing transparency. Unlike HECMs, proprietary reverse mortgages have no federally mandated cap on origination fees, and HousingWire describes a borrower example in which the origination fee on a Loan Estimate exceeded $42,000, before the borrower obtained a second opinion and ultimately closed with substantially lower fees.
HousingWire argues that as proprietary products grow, the industry should improve fee benchmarks and disclosure so borrowers can better judge whether quoted origination fees are typical or significantly higher than expected. It contrasts the standardization and protections emphasized in the HECM program, including mandatory counseling and standardized disclosures, with the greater flexibility of private offerings.