While reverse mortgage production is down in the U.S., the business is booming in Canada where HOMEQ Corporation (HEQ:CN) today announced an 18% rise in originations in the third quarter of 2012, to $65 million. Its overall mortgage portfolio grew 13% to $1.3 billion.
Through its wholly-owned subsidiary, HomEquity Bank, HOMEQ Corp. originates and administers Canada’s largest portfolio of reverse mortgages under the CHIP Home Income Plan label.
The company recently lowered the age requirement for reverse mortgages in Canada from 60 years to 55 years of age. It has seen originations increase following the change.
HOMEQ reported net income of $.09 per share compared with $.12 per share year-over-year.
The company also announced November 8 it has received board approval for the company to be acquired by private equity group Birch Hill Equity Partners, a deal expected to close on or before November 30, 2012.
Written by Elizabeth Ecker