Canada’s national reverse mortgage provider HomEq Corporation discussed annual and quarterly earnings this week, after posting net income of $.24 per share in 2011, up from a $.05 loss in 2010. Reverse mortgage growth of 16% was cited as a strong contributing factor in the company’s record breaking 2011 results.
“Our reverse mortgage offering is now widely recognized as a mainstream financial solution,” said Steven Ranson, President and CEO of HomEq Corp. “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 recorded $239 million of reverse mortgages in 2011, a 16% increase over 2010, and contributing to the company’s $1.2 billion reverse mortgage portfolio.
HomeEq sees a strong future for reverse mortgages in 2012 and beyond, the company said in a statement.
“HOMEQ expects that demand for reverse mortgages will remain firm in 2012. 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.”
HomEq offers reverse mortgages through Canada’s CHIP program, which last year reduced its qualifying borrower age from 60 to 55. In January, a spokeswoman for HomEq told RMD that the change in age requirements had led in part to the reverse mortgage volume increase the company saw last year.
Written by Elizabeth Ecker