Proprietary reverse mortgages continue to thrive as borrowers move away from HECMs

The shift towards proprietary reverse mortgages is a significant trend in the real estate industry, particularly for ASID professionals who work with homeowners and retirees. The fact that private-label loans have surpassed HECM volume, with $1.2 billion in Q3 2026 compared to $880 million for HECMs, indicates a growing demand for alternative reverse mortgage products. This shift may be driven by the more flexible terms and higher loan limits offered by proprietary reverse mortgages, which can be more appealing to homeowners with higher-value properties.

The decline of HECM volume and the rise of proprietary reverse mortgages may also reflect changes in the regulatory environment and market conditions. As the industry continues to evolve, it's essential for ASID professionals to stay informed about the latest developments and options available to their clients. By understanding the benefits and drawbacks of different reverse mortgage products, professionals can provide more effective guidance and support to homeowners navigating the complex world of reverse mortgages.

As the market continues to shift, it will be important to watch how lenders and regulators respond to the growing demand for proprietary reverse mortgages. ASID professionals should keep an eye on upcoming regulatory changes, new product offerings, and shifts in market trends to ensure they are well-equipped to advise their clients. Additionally, the impact of this trend on the broader real estate market, including property values and retirement planning, will be worth monitoring in the coming months and years.

Originally reported by housingwire.com. ASIDNews adds analysis for real estate & property readers.