New Reverse Mortgage Data Shows Senior Citizens Face Declining Home Values and Increasing Forward Mortgages

Seniors in California Carry 50 Percent More Forward Mortgage Debt Than National Average

Golden Gateway Financial, the Web's most comprehensive financial resource for seniors and retirees, today released third quarter usage data from its online reverse mortgage calculator.

The data paints a troubling picture of those senior citizens seeking shelter from the current economic storm, especially in California where senior forward mortgage debt is 50 percent more than the national average. Nationally, individuals exploring a reverse mortgage are increasingly older, with lower home values, and a greater percentage of them are saddled with an existing mortgage on their homes.

As evidenced by a recent AARP study that showed more than 684,000 of those aged 50 and over were either delinquent or in foreclosure; the existing forward mortgage debt of senior citizens becomes a critical issue. Without action or relief, the number of seniors facing foreclosure could continue to rise steeply.

"Seniors across the nation have been hit by a hard one, two punch with falling home values and now the reeling stock market," said Eric Bachman, founder and CEO of Golden Gateway Financial. "Many older Americans are exploring reverse mortgages as a proactive way to gain more control over their finances in today's economy."

Observations include:

--  The average age of those seeking a reverse mortgage has increased
    by almost a full year from the first quarter of 2008
--  Senior citizens self-reported a 4.5% decline in third quarter home
    values as compared to the first quarter of 2008
--  The average national existing forward mortgage debt of senior citizens
    in the third quarter of 2008 was $146, 217
--  In California, the average existing forward mortgage debt in the third
    quarter of 2008 was 50 percent greater than the national average at
    $219,321
--  In California, during the month of September, the average forward
    mortgage debt as reported by seniors was $211,411 or 74 percent of the
    month's reported home sale price of $283,000 across the state (as
    reported by DataQuick)

               Reverse Mortgage Calculator National Averages

                                   Q1 '08        Q2 '08        Q3 '08

Average age                          68.6          69.5          69.7

Average home value              $ 449,200     $ 438,461     $ 428,786

Percent with existing mortgage       51.4%         53.4%        53.8%

Average existing mortgage debt  $ 157,575     $ 159,700     $ 146,217

The company's award-winning online reverse mortgage calculator has been recognized as an important resource for seniors by the Wall Street Journal. It allows users to enter basic information to configure reverse mortgage loan parameters and then compare lenders based on those fields. Golden Gateway Financial makes anonymous and aggregated data from these basic entry fields publicly available on a quarterly basis.

For more information about reverse mortgages or to access Golden Gateway Financial's industry-leading suite of online retirement assessment tools and resources, please visit http://www.goldengateway.com.

About Golden Gateway Financial

Golden Gateway Financial (www.goldengateway.com), located in Oakland, California, is a comprehensive resource for senior citizens, baby boomers and soon-to-be retirees to assess their financial health at retirement. Through a unique set of online tools and clear and unbiased communication, the company helps individuals address "The Great American Retirement Dilemma." The tools enable users to better assess the security of their nest egg and to make intelligent choices to fully enjoy what should be the best years of their lives. The company also operates the industry's premiere reverse mortgage service with a proprietary reverse mortgage calculator and a team of trained counselors to help seniors better understand the product, evaluate whether it is right for them, and identify their ideal lending partner.

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