MBA’s HMDA analysis finds proprietary reverse mortgages jumped 118% in 2025
HMDA data in MBA analysis shows the proprietary reverse mortgage share rose to 22% in 2025, while HECM growth stayed mostly flat.
The Mortgage Bankers Association's analysis of Home Mortgage Disclosure Act data reveals a significant shift in the reverse mortgage market, with proprietary reverse mortgages experiencing a 118% jump in 2025. This surge in proprietary products has led to an increase in their market share, now accounting for 22% of all reverse mortgages. This trend is noteworthy for the real estate and property industry, as it indicates a growing demand for alternative reverse mortgage options beyond the traditional Home Equity Conversion Mortgage (HECM) program.
The HECM program, which is insured by the Federal Housing Administration, has historically dominated the reverse mortgage market. However, the flat growth of HECM loans in 2025 suggests that borrowers are seeking more flexible and innovative products. Proprietary reverse mortgages, offered by private lenders, often provide more generous loan limits and fewer restrictions than HECM loans, making them an attractive option for certain borrowers. As the proprietary reverse mortgage market continues to expand, it will be important for industry professionals to understand the implications of this shift and how it may impact the broader real estate market.
As the reverse mortgage market evolves, it will be essential to monitor the growth of proprietary products and their impact on the industry. Lenders, brokers, and other stakeholders should watch for regulatory developments and changes in consumer demand that may influence the market. Additionally, the performance of proprietary reverse mortgages will be crucial to track, as their growth and potential risks could have significant implications for the real estate and property industry. The ASID community should stay informed about these developments to better navigate the changing landscape of reverse mortgages and provide informed guidance to clients and customers.
Originally reported by housingwire.com. ASIDNews adds analysis for real estate & property readers.