US Reverse Mortgage Market Sees Flat Broker Endorsements as Proprietary Loan Demand Rises
Broker activity for government-backed reverse mortgages remained muted in May 2026, with endorsement volume holding largely flat compared to the previous month. Data compiled by Reverse Market Insight and published on HECMWorld.com indicates that the top third-party originators and brokers maintained their relative market positions despite broader macroeconomic headwinds. Atlantic Avenue Mortgage led the broker and third-party originator channel with 75 endorsements during the month, falling from 110 in April while keeping its 12-month rolling average at 978 loans. loanDepot ranked second with 48 endorsements, exceeding its annual monthly average of 39, followed by Caliver Beach Mortgage, C2 Financial Corp., and West Capital Lending.
Direct endorsement data from New View Advisors shows that the nation's top 15 direct lenders registered 2,034 Home Equity Conversion Mortgage (HECM) loans, reflecting a slight contraction from prior levels. Market concentration among major lenders remains prominent, with Finance of America, Mutual of Omaha Mortgage, and Longbridge Financial collectively accounting for more than half of all direct endorsements. Elevated interest rates and upfront mortgage insurance premiums continue to weigh on standard HECM originations across the industry, prompting mortgage sector leaders to push for policy adjustments on upfront costs.
Despite restrained HECM origination numbers, underlying consumer demand for senior home equity extraction remains elevated. Senior homeowners seeking liquidity in retirement are increasingly turning to non-federally insured private alternatives. Proprietary reverse mortgage products experienced a 245% volume surge between 2023 and 2025, serving as an alternative solution when traditional HECM borrowing limits or terms prove restrictive. However, industry analysis from Dan Hultquist of Movement Mortgage highlights that standard HECMs maintain key structural advantages over traditional home equity loans, as HECMs do not require monthly principal and interest payments or carry the risk of credit line freezes during broader financial downturns.
Lenders and technology platforms are adjusting to high-rate conditions by refining hyper-local marketing strategies and operational execution. Longbridge Financial recently introduced a business intelligence application called the Reverse Analytics Market Platform, offering approved broker partners access to localized HECM transaction data down to the ZIP code level. Meanwhile, select wholesale lenders have managed to expand volume despite market obstacles; Smartfi Home Loans reported a 32% increase in HECM endorsements between 2024 and 2025 by emphasizing operational support and direct partner outreach, according to wholesale senior vice president Kim Smith.
For mortgage originators, financial planners, and real estate professionals working with mature clients, these industry trends highlight shifting financing dynamics in senior housing. While high borrowing costs slow federally backed reverse mortgage originations, the expansion of proprietary products demonstrates that senior equity remains a pivotal source of retirement liquidity. Real estate professionals assisting older homeowners with retirement planning or estate transitions should evaluate both federally insured and private equity-release channels to match specific cash-flow needs.
Source: HousingWire
