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A Record Year for Reverse Mortgages

CHIP-Reverse-MortgageWith a greater senior population, less savings, and lower investment returns, the demographics and growth opportunities keep improving for reverse mortgages.

“Our reverse mortgage offering is now widely recognized as a mainstream financial solution,” said Steven Ranson, President and CEO of HomEquity Bank.

That’s starting to show in its numbers.

HomEquity Bank’s 2010 performance was notable to say the least:

  • 2010 Mortgage originations:  $206 million
    (Up 87% vs. 2009)
  • 2010 Mortgage portfolio:  $1.0 billion
    (Up 17% vs. 2009)

Also of note, broker originations doubled from 2009. Brokers now account to “well above a third of business generated with our partners,” says Arthur Krzycki, Director, Marketing & Public Relations.

HomEquity Bank remains the only national provider of reverse mortgages in Canada. With its distribution channels still evolving and seniors seeking more liquidity than ever, it seems like a given that it’ll post exceptional double-digit growth again in 2011.

Quick Stats:

  • The average CHIP reverse mortgage is $110,000
  • HomEquity Bank has 8,000 reverse mortgages in its portfolio.
  • Analysts expect 33% earnings growth in 2011
  • Analysts have a $7.81 average price target on the stock, which closed today at $6.79

Rob McLister, CMT