HomEquity Bank, a subsidiary of HOMEQ Corporation, Canada’s largest reverse mortgage lender, has grown minimally larger after taking over the remaining portfolio of reverse mortgages funded by Canadian operation Seniors Money International (SMI). HomEquity says it will maintain administration of the portfolio, which rests at just under $4 million, and will continue to service SMI’s existing clients with no changes to terms and conditions.
“With 25 years of business experience providing reverse mortgages to Canadian homeowners, we continue to be proud of our flexible financial solution uniquely positioned to assist seniors in their retirement planning. We welcome our newest clients and are looking forward to enabling them to enjoy retirement on their terms,” said Steven Ranson, the president and CEO of HomEquity. “As a chartered bank, we are benefiting from our strong capital raising capability. We continue to take advantage of the growing market demand by leveraging our extensive partner network and direct-to-consumer marketing programs.”
The acquisition isn’t extremely significant compared to its current portfolio, which is now in excess of $1.1 billion, says HomEquity, adding that the newly-acquired portfolio has an average loan-to-value of 24%, which is well within HomEquity’s lending practices. SMI funded reverse mortgages from September 2007 to March 2008, citing the global credit crisis as its reason for ceasing.
This acquisition comes on the heels of HOMEQ experiencing a significant first quarter increase in earnings and lowering the age eligibility to ages 55 and older for Canadians seeking reverse mortgages.
Written by Alyssa Gerace