HomEquity Bank originated a record volume of reverse mortgages of $206 million in 2010, parent company HOMEQ Corp. said Tuesday.

On an annual basis this is an increase of 87% over 2009 and an increase of 58% over the previous record of $130 million set in 2008.

Mortgage originations in the fourth quarter were $47 million. As at Dec. 31, 2010, HomEquity Bank’s portfolio of reverse mortgages surpassed $1 billion and was 17% higher than a year earlier.

This record breaking performance was attained by HomEquity Bank in its first full year operating as a Schedule I Bank.

The bank offers reverse mortgages to Canadian homeowners 60 and older and have no income, credit or health qualifications. Unlike traditional loans, borrowers don’t have to service the interest or repay the principal for as long as they own their home and are living in it.

“Our reverse mortgage offering is now widely recognized as a mainstream financial solution,” says Steven Ranson, President and CEO. “We are seeing broad market demand for reverse mortgages as the demographic wave and other macro economic factors affect retirement trends in Canada.”

Toronto-based HOMEQ Corp. (TSX:HEQ) expects to release its 2010 audited financial results after the close of business on March 7.

IE