Reverse Mortgages Rise in Canada, HOMEQ Reports Originations up 18%

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. 

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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

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  • Although I would never claim to be as omniscient as Mr. Veale, I think it would be safe to say that if FHA lowered the age to qualify from 62 to 55 in the US we would also see a sizable increase in applications.

    • ediey1,

      Omniscience is the possession of but One Who is also the Creator of us all.  For some, ignorance is a badge of honor to be displayed before all.

      And why would FHA want to increase the accessibility to the program to even more people?  The program has already had to be supplemented by over $2.2 billion from the MMI Capital Reserve Fund through September 30, 2011.  For some looking that information up on the HUD website might take a little effort and time.  

      Rather than 55 why not drive the age down to 18 so that almost all first time home buyers can access the HECM for Purchase?  That way MAYBE the purchase program would no longer be sleeping!!

      But then there is FHA, taxpayers, and lenders to contend with.  There seems no end to genius idea killers.  

      Your idea is very original and imaginative; no doubt someone will adopt it.  (Oops, the Canadians already have it in place).  

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