EquityKey Repurchased By Founders, Looks For New Funding

image EquityKey sent out a notice to originators last week informing brokers them that it had been repurchased by its original founders and is no longer owned or funded by KBC Bank. 

According to the statement, the company is in the process of identifying new funding sources with the intention of resuming funding in the second half of 2009.  See a copy of the statement below:

EquityKey is on the move and we wanted to keep you informed of our progress. Effective March 4, 2009, EquityKey is no longer owned or funded by KBC Bank. Our original founders have repurchased the Company from the bank and are in the process of identifying new funding sources with the intention of resuming funding in the second half of 2009.

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In the meantime we believe it is in the best interest our potential clients to not accept additional applications as we are focusing 100% of our efforts on securing new funding partners; all of our resources are committed to this effort. For those cases currently on hold with us, please advise your clients that we continue to be optimistic about their case and the future of EquityKey and its ability to weather the ongoing storm in the capital markets. When EquityKey resumes funding, we will pull first from the $500 million in existing inventory of successfully underwritten applications. For those of you who have continued to send us applications during the last few months, thank you! We look forward to rewarding that belief in us with successfully funded deals this year.

EquityKey’s product provided a cash advance on a house in exchange for the right to share in the homes future appreciation and started to take off in 2008.  With the lack of a competitive jumbo reverse mortgage product, it was a great alternative for some people.

However, the company halted funding in November of 2008 as the credit markets continued to deteriorate.