Are more reverse mortgages an improvement?

We want every house, condo and semi owner to have access to reverse mortgages, but not everyone will need or want one. These tough economic times have too many property owners digging into their savings to prop up investment income short falls and job loss. Home equity is the value accumulated in real estate and it is no surprise that property owners are digging into this financial resource with lines of credit, reverse mortgages and traditional mortgages.

HOMEQ Corporation (“HOMEQ”) announced earlier this month that its subsidiary, HomEquity Bank, reported record originations of reverse mortgages of $43 million in the fourth quarter of 2009, which represents an increase of 77% over the same period last year and an increase of 11% over the previous record set in the second quarter of 2008. Reportedly, as of December 31, 2009 its reverse mortgage portfolio of $865 million was $52 million or 6% higher than as at December 31, 2008.

In a news release, Steven Ranson, President and CEO of HomEquity Bank credited the 77% increase to: “Our ability to access cost-effective and reliable sources of funding as a bank has allowed us to lower our cost of borrowing and pass the savings to our customers. The increase in originations during the last quarter is an early indication that our pricing strategy is working and that our reverse mortgage offering is being transformed from a niche product into a mainstream financial solution,”

Please note: On hiatus until late March, but email is always on...pjwade@TheCatalyst.com
These tough economic times have too many property owners digging into their savings to prop up investment income short falls and job loss. Home equity is the value accumulated in real estate and it is no surprise that property owners are digging into this financial resource with lines of credit, reverse mortgages and traditional mortgages.

HOMEQ Corporation (“HOMEQ”) announced earlier this month that its subsidiary, HomEquity Bank, reported record originations of reverse mortgages of $43 million in the fourth quarter of
2009, which represents an increase of 77% over the same period last year and an increase of 11% over the previous record set in the second quarter of 2008. Reportedly, as of December 31, 2009 its reverse mortgage portfolio of $865 million was $52 million or 6% higher than as at December 31, 2008.

In a news release, Steven Ranson, President and CEO of HomEquity Bank credited the 77% increase to: “Our ability to access cost-effective and reliable sources of funding as a bank has allowed us to lower our cost of borrowing and pass the savings to our customers. The increase in originations during the last quarter is an early indication that our pricing strategy is working and that our reverse mortgage offering is being transformed from a niche product into a mainstream financial solution,”

Please note: On hiatus until late March, but email is always on...pjwade@TheCatalyst.com