FOR IMMEDIATE RELEASE:

SENIOR FUNDING GROUP SEES 61% RISE IN REVERSE MORTGAGE ORIGINATION IN NY METRO AREA IN 2006

ELDERLY PARENTS HELPING CHILDREN FINANCIALLY; HOME REPAIR; RISING PROPERTY TAXES ARE CHIEF REASONS FOR RISE

HICKSVILLE, NY — Senior Funding Group has become New York State’s largest approved licensed broker originating reverse mortgages for senior citizens in 2006, closing more than 233 loans for an aggregate value of $84 million, an increase of 61-percent over the prior year. The company said that the chief reasons for the dramatic rise was that elderly homeowners needed the funds to help their children financially, pay rising property tax bills, and for simple home repairs.

According to Senior Funding executives, nearly 40-percent the families originating loans last year said there were doing so to provide financial assistance to children who had lost work, gotten divorced or had health problems of their own. The other large category of borrowers –33-percent– originated reverse loans to update their homes, renovating a kitchen, adding a new roof or buying new furniture.

“When we entered the reverse mortgage business three years ago, we were originating loans for seniors in what I would call more desperate straits. Maybe they couldn’t pay heating or electric bills, or they needed the funds to repair a roof,” said Senior Fund Group President and CEO Charles See linger, Jr. “Today, we are seeing more of the decisions to get a reverse mortgage being driven by quality of life issues, like wanting to help children, update a home, or maybe buy a new car.”

In 2006, there were 77,000 reverse mortgages originated nationwide, up 66-percent from the prior year, according to the National Reverse Mortgage Lenders Association. New York trails California, Florida, Arizona and Nevada, who are some of the most popular states for reverse mortgages.

The increasing popularity of reverse mortgages nationwide has been led in part, by dramatic appreciation of residential home values and federal legislation that protects senior citizens from overzealous lenders. In the New York Metropolitan Area alone, many homes have quadrupled in value in the past 20 years, making it the single largest asset for most families. Meanwhile, cash flow for many senior citizens has been squeezed as fewer families have corporate pensions, healthcare costs rise and property taxes escalate in the New York metropolitan area.

“In today’s economic climate, property taxes and prescription drugs can tap out Social Security payments alone,” added See linger. “But to compound the financial challenges for many seniors, the have small or non-existent pensions, and instead of relying on children to help supplement their needs, they need to financially help their children. So when the roof needs to be replaced, or they need a new car, they do not have the financial resources to tap into.”

See linger said the biggest change in the reverse mortgage business over the past three years has been that children have become more comfortable letting their parents take these types of loans.

A reverse mortgage is a loan for people 62 years or older to borrow against the equity in their home, without having to sell, give up title or take on new monthly mortgage payments. It provides tax-free funds in a lump sum, fixed monthly payments, line of credit, or combination of these. There are no credit, income or health requirements to qualify. A reverse mortgage is repaid upon the death of the last spouse living in the home. When the home is sold, the loan amount, any accrued interest and fees are deducted from the sale price.

Founded in 2003, Senior Funding Group is a division of Fast Track Funding of Hicksville, NY, one of New York State’s largest licensed mortgage brokers. Senior Funding has a group of seven reverse mortgage specialists, some of who are attorneys and financial planners, who can assist families determine if a reverse mortgage is right for them. To learn more about reverse mortgages, please visit www.seniorfundinggroup.com or call 1-866-WeReverse (1-866-937-3837).

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Senior Funding Group
247 W. Old Country Road
Hicksville, NY 11801

Media Contacts:

Jerry Schranz
Steinreich Communications
201-498-1600 x 103