Reverse Mortgage Operations Move To Senior Homeowners Financial Services; Signals Maturing of Reverse Mortgage Business

Business Wire,  April 26, 2000  

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Business Editors

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--April 26, 2000

In a move that signals a maturing of the Reverse Mortgage market, Senior Homeowners Financial Services (SHFS) as of May 1st will assume the Reverse Mortgage lending business from Greensboro, N.C.- based Wendover Financial Services Corporation, an EDS subsidiary.

This portfolio has consistently held more than 60 percent of the total market share for all Reverse Mortgages in the United States.

Last year, in excess of 150 lenders nationwide originated these loans and forwarded them to Wendover. Senior Homeowners will expand on these services by processing, underwriting, funding, closing and packaging loans on behalf of these lenders.

This network of lenders represents the nucleus of an industry growing at cyber speed. They also represent the foundation for growth planned by SHFS as it assumes the helm as the leading seller servicer in the industry.

"We will not only be servicing the needs of our correspondent network, we will also be offering loan officer recruitment, training and support for our correspondent team," said Richard Gangel, chairman of SHFS, based in South Florida.

"Reverse Mortgages are a product in the right place at the absolute right time as the boomer generation looks toward retirement options," Gangel added.

Gangel said every element of Wendover's successful operation will stay in place - "every person, every desk, every telephone extension will remain as is," noting Wendover will continue to service new and existing Reverse Mortgage customers. "Most importantly, all the people and the expertise they've developed over the years will stay in place. We are happy to include them on our team."

Gangel noted the industry experienced multiple milestones in 1999, including approval by legislators in Texas, which was the last state to authorize Reverse Mortgages. Today the potential market is $1.8 trillion in equity held by homeowners over the age of 62, the first qualifying age to obtain a Reverse Mortgage.

SHFS will no longer operate as a retailer but will instead channel their understanding of this side of the business into offering excellent service to the network. In the near future, SHFS will begin instituting additional services on a state-by-state basis, Gangel said.

"We will be looking to expand our correspondent network and would welcome the opportunity to talk to those interested," said Gangel. The contact information for Senior Homeowners Financial Services is; Telephone: 954/747-6800, fax: 954/747-6888 or at the headquarters office located at 7771 W. Oakland Park Boulevard, Suite 130, Sunrise, FL 33351.

About Senior Homeowners Financial Services

SHFS is a Fort Lauderdale based company which until recently was a leading seller and originator of Reverse Mortgages in the state of Florida. Previously known by the name GICC Mortgage Corporation, the name was changed to signify the company's new direction as a lender.

About Reverse Mortgages

A Reverse Mortgage is a loan for senior homeowners, which turns home equity into cash. Homeowners do not have to repay the loan until they either sell the home or permanently leave the residence. Minimum age eligibility is 62 years and they most own or nearly own their home. Reverse Mortgages provide these homeowners with a monthly payment, a line of credit or a combination of the two.

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