HOMEQ Corporation, the largest provider of reverse mortgages in Canada, saw originations in the second quarter grow 18% from last year, coming in at $69.7 million.
Adjusted net income per share increased by 42% over the same period in 2010, the portfolio grew by 16% to $1.1 billion. The company continues to see more demand for reverse mortgages and recently announced a product for borrowers 55 years and up.
HOMEQ acquired the remaining portfolio of reverse mortgages funded by the Canadian operations of a prior competitor, Seniors Money International (SMI). The SMI portfolio of just under $4 million has an average loan-to-value of 24% which is well within HOMEQ’s lending practices. The purchase is included in the originations for the quarter.
“During the quarter, HOMEQ lowered the eligibility age of new customers from 60 to 55, primarily in response to a significant demand by couples where one spouse is over 60 while the other may be a few years younger. This initiative is a further example of the ongoing extension and expansion of HOMEQ’s core business,” said Steven Ranson, President and CEO.
HOMEQ said shareholders should see steady increases in net income as a result of the portfolio growth, efficient originations, managed spread and controlled overhead expenses.
“Central to our success is the burgeoning demographic of seniors, seeking to enjoy their retirement years,” the company said in a statement.