SOURCE: Golden Gateway Financial

December 17, 2007 08:00 ET

Golden Gateway Financial Launches Online Services to Ease Retirement Dilemma With New Innovations in Home Equity Access for Seniors

New Company Emphasizes Education, Ease of Reverse Mortgage Comparison and Zero-Pressure Selling for Seniors and Their Children

OAKLAND, CA--(Marketwire - December 17, 2007) - Addressing the alarming retirement shortfall of aging Americans who nonetheless hold trillions of dollars in home equity, Golden Gateway Financial today announced the first independent Internet-based financial services site focused solely on innovations in retirement financing, particularly reverse mortgages. Golden Gateway Financial offers a safe and comfortable environment for seniors and their adult children to confidently learn about, compare and select reverse mortgages and other services that can reduce money concerns and improve life in retirement.

Golden Gateway Financial offers the industry's most comprehensive marketplace. Users can easily compare reverse mortgage options from leading lenders and calculate benefits and costs in three simple steps requiring less than three minutes to complete. The company's reverse mortgage calculator accurately determines the amount of money that can be borrowed and provides amortization details on all closing costs and fees. It allows users to figure out how much equity will remain at the end of the loan based on the loan amount and adjustable assumptions about appreciation.

"There is simply not enough accurate, clearly articulated, useful information available for reverse mortgage consumers today, and frankly too much misinformation, so I applaud Golden Gateway's efforts," said Meg Burns, director of Single Family Program Development, US Department of Housing and Urban Development (HUD). "The web site and tools they've developed represent a huge step at precisely the right time, when demand for this product is increasing dramatically."

The Retirement Shortfall

Significant facts underscore the depth of the great American retirement dilemma. According to the US Bureau of Economic Analysis, the average annual savings rate is equal to only 1 percent of disposable income. 50 percent of US households currently on the brink of retirement have less than $40,000 in liquid assets (US Treasury Department, 6/8/2000). This occurs at a time when there are growing concerns about the long-term viability of government programs such as Social Security and Medicare. Add to this an increasing life expectancy and a 147 percent population increase during the next 25 years of those over age 65 as the Boomer generation enters retirement, and it's easy to see this problem isn't going away any time soon.

While many seniors are "cash strapped," according to a 2007 report by the Hollister Group, a financial services research firm, nearly 80 percent of those over 65 own their own home, accounting for some $4.3 trillion in equity and growing. For those seniors the prospect of employing a reverse mortgage can be an effective option. However, there have been some serious blocks in the path to that option. One is fear based on lack of access to simple, clear reverse mortgage information. Another is around seniors even openly discussing options with their children as well as taking an unhurried approach considering and processing their decision without the intrusive influence of a sales person.

Using the website at and toll-free phone access 1-800-4MONEY4, interested seniors can:

--  Dig deeply into understanding how a reverse mortgage may work for them
--  "Do the math" associated with their equity situation and financial
--  Use the reverse mortgage calculator to accurately compare the broadest
    range of  options
--  Read about how others have benefited from reverse mortgages
--  Get advice on whether or not a reverse mortgage is right for them

This all can be accomplished in a relaxed, unhurried way, including their children even if they aren't nearby.

"Current approaches to reverse mortgages fall short for several reasons," said Eric Bachman, Golden Gateway CEO. "They lack clear information, rational consideration and family interaction. Seniors and their adult children need to break the ice and have a conversation about retirement finances. To do that, they need a safe, non-intrusive, un-pressured way of learning about alternatives so they can gain greater understanding, develop financial plans, consider alternative scenarios and then privately agree on a course at their own pace. Privacy greatly improves understanding and borrower confidence which are at the heart of what we're bringing to this market."

About Reverse Mortgages

Reverse mortgages are loans allowing homeowners age 62 and older to convert home equity into cash. They are called "reverse" mortgages because the lender makes payments to the homeowner. The loan is based on the equity in the home and does not consider the borrower's income, credit or medical history in determining eligibility. To qualify the homeowner must own the home free and clear or be able to pay off existing debt against the home with proceeds from the reverse mortgage. There is considerable misinformation about this form of retirement financing. For more facts on reverse mortgages go to:

About Golden Gateway Financial

Golden Gateway Financial, Inc., located in Oakland, California, is the only financial services firm solely devoted to helping tens of millions of senior Americans access and manage the multi-trillion-dollar value in their homes by confidently obtaining a reverse mortgage. Golden Gateway helps clients reduce money concerns and live better during what should be the best years of their lives. For many, the company solves The Great American Retirement Dilemma. The company's process and Internet marketplace make it the intelligent choice for seniors and their families who want unbiased and clear communication, comparison-shopping for a reverse mortgage and related services to help enjoy retirement and pass wealth to their heirs. For more information go to:

Contact Information

  • Media Contact:
    Mark DiCello
    (650) 433-4161
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