Mutual of Omaha Mortgage Holds the Top Spot in a Shrinking Reverse Mortgage Market
The reverse mortgage industry continued to face headwinds in May 2026, with Home Equity Conversion Mortgage (HECM) endorsements declining 4.7% from April and falling 10.8% compared to the same month a year earlier. Despite the overall market contraction, Mutual of Omaha Mortgage maintained its position as the nation's largest reverse mortgage lender, reinforcing its dominance in a competitive and increasingly consolidated landscape. The data, released by HECMWorld.com and sourced from Reverse Market Insight (RMI), paints a detailed picture of where the industry stands heading into the second half of 2026.
May 2026 HECM Endorsement Numbers at a Glance
Across the top 100 retail lenders, a total of 1,967 HECM loans were endorsed in May 2026. That figure represents a 4.7% drop from April and a notable 10.8% year-over-year decline. Looking at the broader picture, total HECM endorsements across all lenders reached just 10,288 through the end of May — a 13.3% decrease compared to the same five-month period in 2025. These numbers underscore a challenging environment for reverse mortgage originators, even as demand among aging homeowners remains a structural constant.
Mutual of Omaha Mortgage: Leading the Pack Despite Volume Decline
Mutual of Omaha Mortgage recorded 423 HECM endorsements in May, bringing its year-to-date total to 2,169 endorsements and capturing a commanding 21.5% market share. However, the performance was not without its blemishes. Month-over-month production fell 14.9% from April, and the figure was also down 9.4% compared to May 2025. While these declines are notable, Mutual of Omaha's volume still far surpasses most competitors, and its leadership position reflects both the strength of its distribution network and the relative weakness across the rest of the industry.
The lender's ability to maintain its No. 1 ranking in a softening market speaks to the importance of brand recognition, dedicated loan officer relationships, and a well-established infrastructure for reverse mortgage origination. For senior homeowners exploring HECM options, Mutual of Omaha Mortgage remains one of the most recognized names in the space.
Finance of America Posts Rare Monthly Gain
Ranking second in May was Finance of America, with 407 HECM endorsements and a year-to-date total of 2,017. The lender holds a 20.7% market share through the first five months of 2026. What makes Finance of America's May performance particularly noteworthy is that it was one of the few top lenders to post a positive monthly change — a 3.3% increase in production compared to April. This countertrend suggests the company may be capitalizing on strategic initiatives or market positioning that is helping it weather the broader industry slowdown.
That said, Finance of America's year-to-date volume was still down 14.9% from the same period in 2025, indicating that the positive monthly momentum has not yet translated into a full recovery. Nonetheless, the lender's upward trajectory in May is a signal worth watching in the months ahead.
Longbridge Financial Rounds Out the Top Three
Longbridge Financial secured the No. 3 position with 357 HECM endorsements in May and 1,694 endorsements through the first five months of 2026, representing an 18.2% market share. Its monthly volume dipped 2.7%, and year-to-date production was down 5.7% compared to 2025 — making it the most resilient of the three top lenders on a year-over-year basis.
Collectively, the three largest reverse mortgage lenders — Mutual of Omaha, Finance of America, and Longbridge Financial — controlled more than 60% of the total HECM market through May 2026. This level of concentration highlights just how dominant the top tier has become, leaving smaller lenders to compete for the remaining 40% of a shrinking pool of endorsements.
What Is a HECM and Why Does It Matter?
For readers less familiar with reverse mortgages, a Home Equity Conversion Mortgage (HECM) is a federally insured loan product backed by the U.S. Department of Housing and Urban Development (HUD). Designed for homeowners aged 62 and older, HECMs allow borrowers to convert a portion of their home equity into tax-free cash without requiring monthly mortgage payments. The loan is repaid when the borrower sells the home, moves out permanently, or passes away.
HECM endorsements — the point at which the Federal Housing Administration (FHA) officially insures the loan — serve as the primary metric for tracking reverse mortgage industry volume. A decline in endorsements can signal slower origination activity, tighter lending conditions, or reduced consumer demand, all of which appear to be factors in the current environment.
Industry Challenges and the Road Ahead
The persistent year-over-year declines seen across May's HECM data are consistent with broader trends that have challenged the reverse mortgage industry throughout early 2026. Rising interest rates have reduced the principal limit amounts available to borrowers, making HECMs less financially attractive in some cases. Additionally, ongoing economic uncertainty may be causing some eligible seniors to delay decisions about tapping home equity.
On the positive side, the U.S. population of homeowners aged 62 and older continues to grow, and housing values in many markets remain elevated — two factors that support long-term demand for reverse mortgage products. Industry observers will be closely monitoring whether the slight production gains seen at lenders like Finance of America signal a possible inflection point, or whether the broader trend of declining endorsements will continue into the summer.
Key Takeaways for Reverse Mortgage Stakeholders
- Mutual of Omaha Mortgage leads the HECM market with a 21.5% share and 2,169 year-to-date endorsements, despite a 14.9% monthly volume decline.
- Finance of America was one of the few lenders to post a monthly production increase in May, rising 3.3% from April, while holding a 20.7% market share.
- Longbridge Financial holds third place with 18.2% market share and showed the smallest year-over-year decline among the top three lenders at 5.7%.
- The top three lenders collectively account for over 60% of all HECM endorsements through May 2026.
- Total industry-wide HECM endorsements are down 13.3% year-to-date compared to the same period in 2025, reflecting sustained market-wide pressure.
As the reverse mortgage industry navigates a difficult 2026, the consolidation of market share among a handful of large players appears to be accelerating. For senior homeowners, lenders, and investors tracking this space, the monthly HECM endorsement data from sources like Reverse Market Insight will remain an essential barometer of industry health in the quarters to come.