Key facts
- Proprietary reverse mortgages are the primary driver of recent growth in the reverse mortgage market.
- Total reverse mortgage volume increased from $6.25 billion in 2023 to $9.65 billion in 2025.
- Proprietary loan volume surged by approximately 245% between 2023 and 2025.
- HECM loan volume experienced a much smaller growth of about 6% over the same two-year period.
- Higher interest rates disproportionately affect HECM products due to their fixed upfront mortgage insurance premiums.
Proprietary reverse mortgages are increasingly driving growth in the reverse mortgage market, surpassing government-insured Home Equity Conversion Mortgages (HECMs), according to an analysis by New View Advisors. Total reverse mortgage volume rose from $6.25 billion in 2023 to $9.65 billion in 2025, with proprietary loans accounting for the majority of this expansion. Proprietary volume grew by approximately 245% from $1.1 billion in 2023 to $3.8 billion in 2025, while the overall reverse market grew by about 54% in the same period.
Loan counts reveal an even more pronounced shift, with private-label reverse mortgages increasing significantly while HECM volume remained relatively flat. This trend is occurring in a challenging interest rate environment, where higher rates are expected to impact HECM products more severely due to their upfront mortgage insurance structure. The fixed mortgage insurance premium on HECMs, calculated against a maximum claim amount, can become a larger burden as actual borrower proceeds decrease with rising rates.
For lenders and secondary market issuers, proprietary reverse mortgages present a more competitive option in a higher-rate cycle, particularly for higher-value homes. While proprietary products were reintroduced to the market between 2010 and 2017, their relevance has grown substantially in recent years. An emerging niche in second-lien proprietary reverse mortgages also shows significant growth. Data from the Mortgage Bankers Association indicates proprietary products captured 22% of all reverse mortgage originations in 2025, a substantial increase from 7% in 2023. Technology integrations, such as those by Reverse Market Insight and REVERSE plus, are further supporting the origination of these proprietary loans.