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.
As we track the evolving landscape of reverse mortgages, it's clear that proprietary products are gaining significant traction. In Q1 2026, they surpassed the long-standing standard-bearer, Home Equity Conversion Mortgages (HECMs), with $953 million in originations compared to HECMs' $875 million. This shift towards proprietary reverse mortgages warrants attention, particularly when it comes to fee transparency.
The lack of a federal cap on origination fees for proprietary reverse mortgages has raised concerns about the potential for opaque and excessive charges. As the industry continues to grow, pressure is mounting to establish clear fee benchmarks and disclosure standards. This is especially important for homeowners, many of whom may be vulnerable and relying on these financial products to support their retirement. By prioritizing transparency, lenders can help build trust and ensure that borrowers are making informed decisions.
Looking ahead, it's essential to watch how the industry responds to these concerns. Will we see the development of standardized fee disclosures or best practices for proprietary reverse mortgages? How will regulators and consumer advocacy groups influence the conversation? As the market continues to shift, one thing is certain: transparency and accountability will be crucial in maintaining the integrity of the reverse mortgage industry and protecting the interests of homeowners.
Originally reported by housingwire.com. PaintNews adds analysis for real estate & property readers.