Record Set for Annual Originations
TORONTO, Jan. 9, 2012 /CNW/ - HOMEQ Corporation ("HOMEQ") today
announced that in the fourth quarter of 2011 its subsidiary, HomEquity
Bank, originated a record volume of reverse mortgages of $67.2 million
- an increase of 42% over the fourth quarter of 2010. On an annual
basis, originations in 2011 were $239 million, up 16% over the record
setting 2010. As at December 31, 2011, HomEquity Bank's portfolio of
reverse mortgages of $1.2 billion was 17% higher than at December 31,
"Since its inception 25 years ago, HOMEQ Corporation has analyzed the
demographic wave of Canadian seniors and how our business can address
these trends," said Steven Ranson, President and CEO. "Now, the wave
is here and we are meeting seniors' needs for improved cash flow in
retirement. This tremendous market demand is fuelling our strong
growth in originations, while our disciplined approach to operating the
business is resulting in healthy net income growth."
HomEquity Bank is the only national provider of reverse mortgages in
Canada. Reverse mortgages are offered to Canadian homeowners 55 and
older and have no income, credit or health qualifications. Unlike
traditional loans, borrowers don't have to service the interest or
repay the principal for as long as they own their home and are living
In addition to helping Canadian seniors access home equity through its
direct-to-consumer distribution model, HomEquity Bank partners with all
of the nationally chartered major Canadian banks, as well as credit
unions, mortgage brokers, investment and financial planning firms to
offer its reverse mortgage solution.
HOMEQ Corporation expects to release its 2011 audited financial results
in early March.
All figures reported in this press release are on an unaudited basis.
Forward Looking Statements
HOMEQ Corporation from time to time makes written and verbal
forward-looking statements about business objectives, operations,
performance, and financial condition, including the likelihood of
HOMEQ's success in developing and expanding its business. These may be
included in HOMEQ's and its predecessor's annual reports, regulatory
filings, reports to shareholders, press releases, presentations and
other communications. These forward-looking statements are based upon a
number of assumptions and estimates that are inherently subject to
significant uncertainties and contingencies, many of which are beyond
the control of HOMEQ. Actual results may differ materially from those
expressed or implied by such forward-looking statements. HOMEQ does not
undertake to update any forward-looking statement, whether written or
verbal, that may be made from time to time.
About HOMEQ Corporation
HOMEQ Corporation's wholly owned subsidiary HomEquity Bank is the only
national provider of reverse mortgages to homeowners aged 55 and over,
Canada's fastest growing demographic segment. HomEquity Bank originates
and administers Canada's largest portfolio of reverse mortgages under
the CHIP Home Income Plan brand. As of December 31, 2011, the mortgage
portfolio comprised approximately 9,000 reverse mortgages with an
accrued value of $1.2 billion.
With over a quarter century of experience in the marketplace, HomEquity
Bank enjoys a strong financial position with access to diverse and
cost-effective funding sources. With a seasoned management team,
product expertise and skillful marketing, the organization is well
positioned for market leadership and growth.
HOMEQ's shares trade on the Toronto Stock Exchange under the symbol
HEQ. For more information, visit www.homeq.ca.
SOURCE HOMEQ Corporation
For further information:
| Steven K. Ranson |
President and Chief Executive Officer
| || || || Gary Krikler |
Senior Vice President and Chief Financial Officer