HOMEQ Corporation

HOMEQ Corporation

November 26, 2010 09:30 ET

HOMEQ Corporation Celebrates 25th Year Serving Canadian Seniors

HomEquity Bank, Its Wholly Owned Subsidiary, Marks Its First Year as a Schedule I Bank

TORONTO, ONTARIO--(Marketwire - Nov. 26, 2010) -

Attention: News Assignment, Business/Financial Editors

HOMEQ Corporation (HOMEQ) (TSX:HEQ), Canada's leading provider of reverse mortgages through its wholly owned subsidiary HomEquity Bank, is proud to celebrate its 25th year of providing Canadian seniors with an alternative financial solution for retirement. HomEquity Bank, formerly known as Canadian Home Income Plan Corporation, celebrates its first anniversary as a Schedule I Canadian bank.

To recognize these milestones, HOMEQ will celebrate by opening trading on the Toronto Stock Exchange today.

"Throughout our 25-year history serving Canadians, we've had a number of important accomplishments that defined our development and vision as a business," says Steven Ranson, President and CEO, HomEquity Bank. "It is very exciting to celebrate both 25 years of operation in Canada and our one-year anniversary as a Schedule I bank. We're proud to have continued to grow and experience success since pioneering the reverse mortgage offering in Canada."

Below are some of HOMEQ Corporation's milestones:

  • 1986: William Turner, founder of Canadian Home Income Plan (CHIP) Corporation, now known as HomEquity Bank, pioneers the reverse mortgage concept in Canada.
  • 1997: First major banking partner begins recommending the CHIP solution to its clients.
  • 2001: CHIP Home Income Plan solution, now available in every province, is supported by a national distribution network.
  • 2002: CHIP's parent company, Home Equity Income Trust, begins publicly trading on the Toronto Stock Exchange under the symbol HEQ.UN. At the time, the portfolio of outstanding mortgages was $364.3 million.
  • October, 2009: Canadian Home Income Plan (CHIP) Corporation is granted letters of patent and operates as a Schedule I bank under the new name, HomEquity Bank.
  • 2010: HOMEQ continues to report record quarterly results, capping off the third quarter of 2010 with origination growth exceeding 77 per cent from Q3 2009.
  • 2010: HomEquity marks the one-year anniversary as a Schedule I Canadian bank with record originations of $201 million in the latest four quarters and a portfolio of $985 million projected to exceed $1 billion before the end of the year.

"At HomEquity Bank, we've been improving and enhancing our offering and growing our business, even during the recent economic downturn," says Ranson. "This is a further indication that the CHIP Home Income Plan has evolved from a niche product and is continuing to garner popularity as a mainstream financial solution."

"This kind of growth and steady success shows we are on the right track with our strategic direction and our product offering that meets the needs of Canadian seniors," adds Ranson. "In the coming months, we intend to introduce additional product features that will enable an even broader segment of Canadian seniors and homeowners approaching retirement to put their home equity to work for them."

Since its inception, the CHIP Home Income Plan has helped thousands of Canadian seniors looking for a simple, sensible way to unlock up to 40 per cent of value in their homes to achieve a more enjoyable retirement.

Forward Looking Statements

HOMEQ Corporation from time to time makes written and verbal forward-looking statements about business objectives, operations, performance, and financial condition, including the likelihood of HOMEQ's success in developing and expanding its business. These may be included in HOMEQ's and its predecessor's annual reports, regulatory filings, reports to shareholders, press releases, presentations and other communications. These forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of HOMEQ. Actual results may differ materially from those expressed or implied by such forward-looking statements. HOMEQ does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time.

About HOMEQ Corporation

HOMEQ's wholly owned subsidiary HomEquity Bank is Canada's only national provider of reverse mortgages to homeowners aged 60 and over, Canada's fastest growing demographic segment. HomEquity Bank originates and administers Canada's largest portfolio of reverse mortgages under the CHIP Home Income Plan brand. As of September 30, 2010, the mortgage portfolio comprised approximately 7,800 reverse mortgages with an accrued value of $985 million, secured by residential properties across Canada worth approximately $2.7 billion. HomEquity Bank has been the main underwriter of reverse mortgages in Canada since its predecessor, Canadian Home Income Plan, pioneered the concept in 1986.

HOMEQ's shares trade on the Toronto Stock Exchange under the symbol HEQ. Additional information on HOMEQ, including annual and quarterly reports can be viewed at www.homeq.ca.

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