ATLANTA, July 1, 2005 (PRIMEZONE) -- Equus Resources, Inc. (Pink Sheets:EQUR) ("Equus") announced today that it will aggressively market reverse mortgages as part of its commitment to offer a full range of financial products to its customers.
A reverse mortgage allows a homeowner age 62 or older to borrow against the equity in the home, but unlike a traditional mortgage, the loan and interest do not have to be repaid until the home is sold. A reverse mortgage can be in the form of a line of credit that can increase over time and be drawn on as needed, a large lump sum payout, a fixed monthly check for as long as the borrower lives in the home, or a mix. There are typically minimal or no upfront costs since closing and other fees can be wrapped into the loan. A reverse mortgage also pays off any existing mortgage, stopping that monthly payment. Unlike traditional loans, reverse mortgages are non-recourse, which means no personal liability to the borrower or his or her heirs, and there are no income or credit requirements. Additionally, most reverse mortgages are backed by the U.S. government.
According to Fannie Mae, reverse mortgages mean that "today's seniors, who represent the fastest growing segment of the population, can now enjoy the benefits of having their homes pay them back for all the years they spent paying their mortgages, and such mortgages are designed to strengthen seniors' personal and financial independence and security."
"Many seniors are now sitting on home equity they never dreamed of," according to realty expert Tom Kelly, whose recent book, The New Reverse Mortgage Formula, is a guide for seniors to retain their home while cashing it on it. And the untapped home equity held by the senior population is approaching a staggering $2 trillion, according to the National Council on Aging.
The reverse mortgage manager for Equus is Rudy Hill who has specialized in them since the mid-nineties. Rudy has over 20 years' experience in the financial services industry and is a Vietnam veteran who served with distinction in the Air Force. Rudy attended Indiana University completing studies in Business Management.
In making this announcement, Randy Harris, President of Equus, commented: "The reverse mortgage has been largely a niche product in the past, with only 40,000 closed last year. However, that figure represents a 200% increase from 2003, and we know that reverse mortgages are becoming one of the fastest growing areas of the mortgage market as the aging of America continues to explode. We are fortunate to be in a position to capitalize on this growth through an experienced professional like Rudy."
Rudy Hill added: "I began working with reverse mortgages ten years ago and believe I understand them as well as anyone in this market. Reverse mortgages are not for everyone, but for many of my clients they have proven to be a Godsend. I love helping seniors in their golden years and I am grateful for this opportunity to teach, direct and inspire others about the advantages of reverse mortgages. I am totally confident that I will be able to build this business into 50+ loans a month by this time next year."
In other news, Equus reaffirmed its exit from the entertainment finance field in order to concentrate solely on expanding its core businesses of commercial and consumer mortgage and insurance services.
About Equus Resources
Equus Resources is a multi-faceted financial services company that offers consumer and commercial clients a broad range of mortgage and insurance products, mainly in the southeastern states. Equus plans to expand its business through internal growth and acquisition and to continually add new financial products and services. Equus is headquartered in Roswell, Georgia, a suburb of Atlanta. For more information, please visit us at www.equusresources.com and www.teamonemortgage.com or e-mail us at investorinfo@equusresources.com and we will add you to our electronic mailing list.
Forward-Looking Statements:
Any statements made in this press release which are not historical facts contain certain "forward-looking statements," as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the Company to which this release pertains. The actual results of the specific items described in this release, and the Company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgment of management of the Company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties, including, without limitation, the Company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, the receipt of revenues, and other factors, many of which are beyond the control of the Company. The Company disclaims any obligation to update information contained in any forward-looking statement.