HOMEQ Reverse Mortgage Volume Up 87% in 2010

NewImageCanadian based HOMEQ experienced record breaking volume in 2010, originating $206 million of reverse mortgages, an increase of 87% from 2009 according to financial results released on Monday.

“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.”

The company’s portfolio grew 17% to $1 billion during 2010 and net income improved to $0.01 per share, up from a net loss of $0.13 per share in 2009.

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Starting its 25th year of of business operations, HOMEQ said it expects demand for reverse mortgage to remain firm in 2011.  With a continued positive impact coming from the increasing number of Canadians over 60 years of age, an increase in the size of the sales force and additional experience in the sales and marketing functions, HOMEQ’s objective is to increase the mortgage portfolio by between 15% and 20% per annum.

“The combination of portfolio growth, efficient originations, spread management and overhead expense control should provide increases in adjusted net income per share on an IFRS basis of a minimum of 20% per annum commencing in 2011,” said the company. “Adjusted net income in Q1 2011 will be reduced as a result of the cost of issuing new debt and redeeming existing debt, however profitability will increase as expected over the remainder of the year.”

For a copy of HOMEQ’s financial results, see here.

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