Reverse mortgage originations up 87%
TORONTO, Jan. 11 /CNW/ - HOMEQ Corporation ("HOMEQ") today announced that in 2010 its subsidiary, HomEquity Bank, originated a record volume of reverse mortgages of $206 million. On an annual basis this is an increase of 87% over 2009 and an increase of 58% over the previous record of $130 million set in 2008. Mortgage originations in the fourth quarter were $47 million. As at December 31, 2010, HomEquity Bank's portfolio of reverse mortgages surpassed $1 billion and was 17% higher than at December 31, 2009.
This record breaking performance was attained by HomEquity Bank in its first full year operating as a Schedule I Bank. "Our reverse mortgage offering is now widely recognized as a mainstream financial solution," said Steven Ranson, President and CEO. "We are seeing broad market demand for reverse mortgages as the demographic wave and other macro economic factors affect retirement trends in Canada."
Now entering its 25th year of business operations, HomEquity Bank is the only national provider of reverse mortgages in Canada. Reverse mortgages are offered to Canadian homeowners 60 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 it.
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 2010 audited financial results after the close of business on March 7th, 2011 followed by a conference call to discuss its performance the following morning.
All figures reported in this press release are on an unaudited basis.
Forward Looking Statements
From time to time, HOMEQ Corporation 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 or 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 HomEquity Bank and HOMEQ Corporation
HomEquity Bank is a Schedule I Canadian Bank and a wholly-owned subsidiary of HOMEQ Corporation. HOMEQ's shares trade on the Toronto Stock Exchange under the symbol HEQ.
HomEquity Bank is the only national provider of reverse mortgages to homeowners aged 60 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, 2010, the mortgage portfolio comprised approximately 8,000 reverse mortgages with an accrued value of $1.0 billion, secured by residential properties across Canada worth approximately $2.8 billion. HomEquity Bank has been the main underwriter of reverse mortgages in Canada since its predecessor, Canadian Home Income Plan, pioneered the concept in 1986.
HomEquity Bank has an effective direct-to-consumer distribution model as well as a well-established referral network. This extensive referral network includes all major Canadian banks, credit unions, mortgage brokers, investment and financial planning firms.
HomEquity Bank also offers competitive Guaranteed Investment Certificates (GICs) to investors across Canada through independent deposit brokers and major Canadian banks. For more information about HomEquity Bank, please visit www.homequitybank.ca. Additional information on HOMEQ Corporation, including annual and quarterly reports can be viewed at www.homeq.ca.
SOURCE HOMEQ Corporation
For further information: Steven K. Ranson, President and Chief Executive Officer, HomEquity Bank, Tel: 416-413-4663, firstname.lastname@example.org; Gary Krikler, Senior Vice President and Chief Financial Officer, HomEquity Bank, Tel: 416-413-4679, email@example.com