Layla Zulfa
August’s Home Equity Conversion Mortgage (HECM) endorsement data, compiled by Reverse Market Insight (RMI) and reported by HECMWorld.com, has solidified the positions of Atlantic Avenue Mortgage, loanDepot, and Caliver Beach Mortgage as the leading brokers on a 12-month rolling basis. These three firms have maintained their top-tier status throughout much of 2026, reflecting a consistent performance in a market that is increasingly influenced by proprietary products and evolving economic conditions.
Atlantic Avenue Mortgage continues to hold the lead with a rolling total of 1,002 endorsements as of August. This figure represents a slight decrease from the 1,009 endorsements recorded in July, indicating a minor fluctuation within an otherwise strong performance. loanDepot saw a significant uptick in its August activity, endorsing 43 loans during the month, which propelled its rolling total to 476. Caliver Beach Mortgage, while remaining in the top three, experienced a slight dip in its rolling total to 352 after producing 19 loans in August.
The consistent performance of these top brokers underscores their established presence and operational efficiency in the HECM market. Their ability to navigate the complexities of reverse mortgage origination and consistently deliver results positions them as key players in providing financial solutions for senior homeowners. The HECM program, a federal insurance program administered by the Department of Housing and Urban Development (HUD), allows homeowners aged 62 and older to convert a portion of their home equity into tax-free cash, often used to supplement retirement income or cover healthcare expenses.
Beyond the leading trio, the top 10 HECM brokers on a rolling basis for August also include West Capital Lending (194 endorsements), C2 Financial Corp. (191 endorsements), Barrett Financial Group (155 endorsements), NEXA Lending (140 endorsements), Carrington Mortgage Services (122 endorsements), Senior Lending Corp. (115 endorsements), and Integrity 1st Mortgage (107 endorsements). Notably, West Capital Lending experienced a robust August, adding 15 loans to its portfolio and surpassing C2 Financial Corp. to claim the fourth position with a rolling total of 194 endorsements. This shift highlights the dynamic nature of the broker rankings, even among established firms.
A Shifting Landscape: HECM Production Declines as Proprietary Products Ascend
While HECM endorsements from leading brokers remain a key indicator of the senior lending market, broader industry data reveals a significant trend: a decline in overall HECM origination volume. September data, also released by RMI, indicated a 6.7% decrease in HECM endorsements compared to August, with the 1,790 loans originated in September marking the lowest monthly total since April 2020. This downturn coincides with a period of increasing interest rates and a growing preference for proprietary reverse mortgage products.
This trend was further illuminated by New View Advisors’ Proprietary Reverse Mortgage Production Index. The latest edition of this index revealed that private-label, or proprietary, reverse mortgage products are now the primary engine of growth for the broader reverse mortgage industry. In September, proprietary loans accounted for over 60% of the total reverse mortgage volume, a share that is projected to continue its upward trajectory. This shift suggests that while the HECM program remains a foundational element, the market is increasingly gravitating towards alternative products that may offer different features or cater to specific borrower needs.
The implications of this shift are significant. Proprietary products, often developed by private lenders, can offer more flexibility in terms of loan amounts, borrower eligibility, and product features compared to the standardized HECM offerings. This flexibility can be particularly appealing to homeowners with higher home values or those seeking customized financial solutions. As proprietary loan volume grows, it also signals increased innovation and competition within the reverse mortgage sector, potentially leading to a wider array of options for consumers.
Economic Headwinds and Tailwinds: Interest Rates and Treasury Yields
The reverse mortgage industry, like all sectors of the housing finance market, is sensitive to macroeconomic conditions, particularly interest rate movements. The recent uptick in interest rates has presented a unique challenge for reverse mortgages. Unlike traditional forward mortgages, where higher rates might deter some borrowers, in the reverse mortgage context, higher rates can directly reduce the amount of loan proceeds available to borrowers. This is because the amount a borrower can access is influenced by prevailing interest rates, as well as the Federal Housing Administration’s (FHA) lending limits and the borrower’s age and home value.
However, recent developments in the capital markets have offered a glimmer of optimism. In his weekly "Ribler on Rates" video series, Dan Ribler of Longbridge Financial pointed to a recent easing in the 10-year Treasury yield. This yield is closely correlated with long-term mortgage rates. Over the preceding 30 days, the 10-year Treasury yield had decreased by approximately 35 basis points. Ribler characterized this movement not as a fundamental repricing of the market, but rather as a short-term "risk-off" cycle, where investors shift capital from riskier assets like stocks into safer assets, including Treasurys. This increased demand for Treasurys drives up their prices and consequently lowers their yields, potentially leading to more favorable rates on mortgage products.
"This is just a 30-day cycle of risk-off – currencies, dollars moving out of riskier assets, whether it’s stocks, whether it’s AI infrastructure, into safer assets and Treasurys," Ribler explained. "As more dollars move into Treasurys, the price goes up and the yield comes down, and we get a little bit of rate love on our rate sheets."
While HousingWire’s Mortgage Rates Center indicated an average 30-year fixed rate of 7.34% on Wednesday, rates for reverse mortgage products typically trend higher. Even a modest decrease in Treasury yields could translate into slightly more accessible loan proceeds for reverse mortgage borrowers, offering a welcome respite in a challenging rate environment.
Technological Advancements Aim to Boost Originations
In response to the evolving market dynamics and the need to maintain business momentum, lenders are increasingly turning to technological solutions. One such innovation was announced by Nationwide Equities Corp. with the launch of ReverseReach. This new tool is specifically designed to assist traditional mortgage brokers in their lead generation efforts by leveraging their existing databases of past clients.
Paul Lamparillo, CEO of Nationwide Equities Corp., highlighted the purpose behind ReverseReach: "We created ReverseReach to make uncovering those highly lucrative opportunities simple, efficient and accessible – even for brokers who have never closed a reverse mortgage before – so they can confidently and comfortably begin originating them."
The introduction of tools like ReverseReach signifies a strategic effort to bridge the gap between traditional mortgage origination and the reverse mortgage market. By simplifying the process of identifying potential clients and providing the necessary resources, such technologies aim to empower a broader range of mortgage professionals to enter and succeed in the reverse mortgage space. This could lead to increased HECM origination volume, especially among brokers who may have previously lacked the expertise or resources to pursue reverse mortgage business.
Looking Ahead: Market Projections and Industry Outlook
The confluence of declining HECM volumes, rising proprietary product dominance, and fluctuating interest rates paints a complex picture for the reverse mortgage industry. New View Advisors has projected that despite potential headwinds from rising interest rates in the fourth quarter, proprietary loans could drive the overall reverse mortgage industry to exceed $8 billion in originations for 2026. This figure represents a substantial increase from the $7.3 billion in total new originations recorded in 2025.
This optimistic outlook, particularly for proprietary products, suggests a growing demand for flexible and customized senior housing finance solutions. As the Baby Boomer generation continues to age and their financial needs evolve, the reverse mortgage market is poised for continued relevance. The industry’s ability to adapt to changing economic conditions, embrace technological innovation, and offer a diverse range of products will be crucial in meeting the needs of this significant demographic. The performance of top brokers like Atlantic Avenue Mortgage, loanDepot, and Caliver Beach Mortgage, while currently focused on HECM, will likely be influenced by their ability to either expand their offerings or maintain strong market share within the HECM framework as the broader reverse mortgage landscape continues to diversify.
The Department of Housing and Urban Development (HUD) is expected to release its HECM direct lender rankings for October, which will provide further insight into the performance of lenders in that specific segment of the market. The anticipation for this data highlights the ongoing interest in the health and trajectory of the HECM program amidst broader industry shifts. The interplay between government-backed HECM products and the burgeoning proprietary market will continue to shape the future of senior financial solutions.
