Summit Mortgage Announces Reverse Mortgage Division in Response to Growing Need among Retirees

Business Wire,  May 23, 2007  

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Leading Boston Mortgage Firm Aims to Educate Consumers and Their Families;

Reverse Mortgages Viewed as Viable Means to Retire Comfortably

BOSTON -- Responding to a growing number of Boston-area residents on the cusp of retirement, Summit Mortgage, a premier, private Boston-based mortgage banking firm, today rolled out its own reverse mortgage division in an effort to assist those considering the loans.

In creating its reverse mortgage unit, Summit Mortgage says the mortgage division will give those 62 or older much needed financial independence while providing them the ability to stay in their own homes.

"It gives our clients financial independence, and allows them to remain in their homes as long as they wish without being forced to sell due to rising medical costs or other hardships," said Richard S. Fedele, CEO of Summit Mortgage. "Summit Mortgage is prepared to offer the best service and guidance to buyers and their families seeking reverse mortgages."

A reverse mortgage is a loan that allows seniors aged 62 and older to convert part of their home equity into tax-free income without having to sell the home or make monthly mortgage payments. The loan does not come due until the borrower leaves the home.

According to the National Reverse Mortgage Lenders Association, Boston experienced a 97 percent jump in the number of federally insured reverse mortgages during the past year. There were 2,263 mortgages in 2006, compared to 1,148 in 2005.

"Although reverse mortgages are growing in Massachusetts, there is an untold number of seniors and their families who need to better understand the process," said Fedele. "It is critical that the mortgage industry provide the necessary information to open up the dialogue between loan officers and seniors and their families."

Summit will have reverse mortgage experts at each of its nine branches throughout Massachusetts and has the ability to assist seniors throughout New England.

Chuck Furtado, managing director of Summit's Reverse Mortgage division, noted that the loans are particularly appealing to seniors who need the money for longterm medical expenses and other needs facing those on a fixed income.

According to a report issued by Fidelity Investments in February 2007, the average 65-year-old couple retiring today will need $215,000 to cover medical expenses alone, which accounts for half of their social security income.

"It's truly a safety net for seniors in their golden years," noted Furtado. "This is unlike any other loan in U.S. history because we're now giving cash to seniors who need it most."

About Summit Mortgage

Boston-based Summit Mortgage, founded in 1996, is one of the largest privately held mortgage banking firms in Massachusetts. It closed more than $1.2 billion in mortgage loans in 2006. Summit operates nine branches in the Boston area, including three in the city and one each in Lexington, Needham, Norwell, South Easton, Swampscott, and Wakefield, and three in Florida in Boca Raton, Naples, and North Palm Beach. Summit and its affiliates are licensed throughout New England as well as in Arizona, California, Colorado, Maryland, North Carolina, Nevada, Oregon, South Carolina, Virginia and Washington, and Washington, D.C. The company recently placed 103rd on the 2006 Inc. 500 list of the country's fastest-growing private companies with 877 percent growth from 2002 to 2005.

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