Vertical Lend to be Acquired by KBC Financial Products, boosting reverse mortgages

MELVILLE, N.Y.–(BUSINESS WIRE)–Vertical Lend announced today that it has recently signed a definitive agreement to be acquired by KBC Financial Products, a wholly-owned subsidiary of Belgian-based KBC Bank NV. The acquisition is expected to accelerate Vertical Lend’s objective to increase market share and brand recognition in the reverse mortgage lending market through its highly recognized Senior Lending Network. Vertical Lend (VL) is the fifth largest provider of home equity conversion mortgages (HECM). KBC Financial Products (KBCFP) is a market-leading specialist in equities and equity, credit and fund-linked derivatives and structured credit products.

“Our acquisition of Vertical Lend provides a tremendous opportunity for our company to participate in the growing reverse mortgage market,” said Thomas Korossy, chief executive officer of KBCFP. “Our strength in capital markets should enable Vertical Lend to provide the products and expanded distribution channels needed to broaden their offerings in the U.S.”

“We expect this synergistic relationship to produce a significantly positive change in the type of reverse mortgages that are being written today,” said David Peskin, chief executive officer of Vertical Lend. “KBCFP has the products and the financial strength, and we are a leader in marketing and distribution.”

Financial details of the transaction have not been announced. The deal is expected to close at the end of the month, subject to certain conditions, including final regulatory approvals.

About Vertical Lend

Vertical Lend (VL) is one of the premier reverse mortgage services companies in the United States, offering originators complete lead-to-closed services through comprehensive marketing, lending, education and technology solutions. VL is dedicated to building the reverse mortgage industry by fostering strong partnerships with originators and by providing outstanding consumer education. Through VL’s national consumer education campaign, Senior Lending Network, VL educates millions of Americans about the important benefits of reverse mortgages and then refers interested consumers to qualified and experienced originators, who have access to VL’s wholesale reverse mortgage products, technology and education services. For more information, call 1-800-562-6755 or visit the company’s website at www.verticallend.com.

About KBC Financial Products

With offices in New York, London, Tokyo and Hong Kong, KBCFP is a wholly-owned subsidiary of KBC Bank NV. KBCFP’s product range includes equities, convertible and high yield bonds, equity derivatives, fund derivatives and structured credit products. KBC Bank NV is a wholly-owned subsidiary of KBC Group NV, a large multi-national banking and insurance group listed on Euronext Brussels. KBC Group NV, a multi-channel banking, insurance and asset management group, is one of the leading financial institutions in Europe, focusing on Belgium and Central Europe, and catering to retail and private banking customers. For more information, visit the KBC Financial Products website at www.kbcfp.com.

Written by charles dennis on August 3rd, 2007 with no comments.
Read more articles on Banks & Lenders.

Reverse Mortgage training Down Under

It seems as though by the mountains of emails I receive regarding the reverse mortgage in other countries, America is not alone in their quest to exploit the popular new mortgage product.  In Australia, brokers and estate planners are lining up to gain accreditation to complete the loans.

Over Fifty Group (OFG) and SEQUEL have partnered up to provide reverse mortgage accreditation courses for brokers and planners.

Driven by the growing popularity of reverse mortgages and equity release products, as well as growing pressure from consumer groups such as Choice, the course will be offered free, but with a $75 registration fee payable to SEQUAL.

Technical services manager Benedict Davies said the establishment of SEQUAL’s accredited course earlier this year helped develop the seminar program, which formalises training work OFG had already done in reverse mortgages,

“As a product provider, we want to ensure intermediaries who recommend the product have an acceptable level of training. It protects our interests but importantly it protects the consumer’s interests as well,” he said.

Benedict said he hoped to get around 100 planners and brokers to the sessions, 50 per half-day course.

Courses will be available in all mainland states, but will exclude Tasmania and the Territories. However, Davies said if there was demand, extra seminars could be arranged.

Written by charles dennis on August 3rd, 2007 with no comments.
Read more articles on Banks & Lenders and Market News.

Pros and Cons of Reverse Mortgages

REVERSE MORTGAGE: Designed to strengthen senior citizens’ personal and financial independence, these loans allow homeowners to convert the equity in their home into cash. Any existing mortgage is paid off and homeowners don’t make any payments to the lender as long as they live in the house.
• Pros: Proceeds are tax-free as long as the property owner lives in the home. There are no income or credit requirements to qualify and equity may be drawn through monthly payments from the lender to the homeowner or as a credit line.
• Cons: Though the property may be passed on to the homeowner’s heirs, money received from a reverse mortgage is payable to the lender when the property owner leaves permanently. All the fees are paid for upfront.
• Most suited for: A senior looking to shore up his or her personal independence who has amassed a lot of equity in his or her home and expects to be there for at least three years or more.
• Least suited for: Someone looking to fill short-term borrowing needs.

AJC

Written by charles dennis on August 3rd, 2007 with no comments.
Read more articles on Market Commentary and education.