Reverse Mortgage Market Faces Ongoing Slowdown Despite March Rebound

HECM endorsements rise 16% but remain near recent lows, as proprietary products gain share

Apr. 7, 2026 at 6:58pm

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A high-contrast, close-up image of the inner workings of a reverse mortgage processing machine, with gears, levers, and mechanisms rendered in a cinematic, industrial style, conceptually representing the complex financial landscape of the evolving reverse mortgage industry.The reverse mortgage market's transition is reflected in the industry's evolving financial infrastructure, as proprietary products gain ground.NYC Today

HECM reverse mortgage volume increased 16.3% in March compared to the prior month, reaching 2,117 loans. However, this rebound does little to change the broader trajectory of a slowing reverse mortgage market, as volumes remain down 0.5% year-over-year and proprietary reverse products continue capturing a larger share of overall production.

Why it matters

The reverse mortgage industry is undergoing a transition, with growth increasingly coming from outside the FHA-backed HECM channel. This shift in the competitive landscape means originators relying solely on HECM volume may face ongoing headwinds as the market evolves.

The details

HECM endorsements climbed in March after a weaker February, but activity across both months remains among the lowest levels recorded since mid-2025. While HECM data provides a clear view into federally backed reverse activity, it does not fully capture growth in proprietary reverse mortgages, which have been expanding in recent years outside of the refinance-driven surge between 2018 and 2022.

  • HECM endorsements dropped to 1,821 loans in February 2026.
  • HECM endorsements increased 16.3% to 2,117 loans in March 2026.
  • HECM volumes remain down 0.5% compared to a year earlier in March 2026.

The players

Finance of America

The leading reverse mortgage lender in March 2026, with 454 endorsements.

Mutual of Omaha Mortgage

The second-largest reverse mortgage lender in March 2026, with 409 endorsements, though it remains below its year-ago pace.

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The takeaway

The modest rise in HECM volume does not indicate a return to prior production levels, as activity remains constrained and competitive pressure is increasing with the growing share of proprietary reverse mortgage products. Originators relying solely on HECM volume may face continued headwinds as the market evolves.