Proprietary reverse mortgages are outpacing HECMs. It’s time to raise the bar on fee transparency.
Proprietary reverse mortgages surpassed HECMs in Q1 2026, with $953 million in originations vs $875 million. With no federal cap on origination fees, the industry faces growing pressure to improve fee benchmarks and disclosure.
The shift towards proprietary reverse mortgages is a significant development in the industry, and it brings with it a pressing need for greater transparency, particularly when it comes to fees. With proprietary reverse mortgages now outpacing Home Equity Conversion Mortgages (HECMs), it's clear that this market is growing rapidly. However, the lack of a federal cap on origination fees for proprietary reverse mortgages means that consumers may be exposed to higher costs.
This growing disparity highlights the importance of establishing clear fee benchmarks and disclosure practices within the industry. As the market continues to evolve, it's crucial that lenders and industry stakeholders prioritize transparency and fairness in their dealings with consumers. By doing so, they can help build trust and ensure that homeowners have access to the information they need to make informed decisions about their financial options.
In the coming months, it will be essential to watch how the industry responds to these challenges. Will lenders and industry groups establish voluntary guidelines for fee disclosure, or will regulatory bodies step in to impose stricter requirements? As the market continues to grow and mature, one thing is clear: fee transparency will be a critical issue for proprietary reverse mortgages, and it's an area where industry stakeholders must raise the bar to protect consumers and maintain the integrity of the market.
Originally reported by housingwire.com. ASIDNews adds analysis for real estate & property readers.