HOMEQ Corporation, the largest Canadian reverse mortgage lender, recently reported its first quarter results, boasting a 16% increase in its mortgage portfolio compared to last year. The corporation’s subsidiary, HomEquity Bank, gained $47 million in originations, adding to a $1.1 billion portfolio comprised of about 8,000 reverse mortgages.
“HomEquity Bank is meeting growing demand for its reverse mortgages from across the country driven by a number of factors including the increasing number of seniors, Canada’s fastest growing demographic,” said Steven Ranson, President and CEO.
Canada NewsWire reports that 2010 was a year when the business was “completely transformed,” laying a firm foundation to continue growing in 2011 and beyond. HOMEQ has expanded as expected, says Canada NewsWire, adding that funds were raised at attractive rates, origination and administrative expenditure remained well controlled and the volume of inquiries and applications continued at the heightened pace experienced in 2010.
“We are happy with the level of originations in the quarter which compare favourably to the first quarter of 2010. This is a significant achievement in light of the fact that originations in Q1 2010 were especially high, having responded strongly to pent-up demand following a period during which HOMEQ had taken active steps to reduce its level of business expansion,” said Ranson.
With the growing senior population, HOMEQ is expected to continue to flourish, especially as HomEquity Bank is the only national provider of reverse mortgages. Ranson says the corporation’s competitive pricing, effective publicity and engaging marketing campaigns are making the Canadian Home Income Plan more accessible and attractive to seniors.
View the first quarter report here.
Written by Alyssa Gerace