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About Dollar Bank

Dollar Bank provides Reverse Mortgages offering financial help to senior citizens



Pittsburgh, PA/Cleveland, OH: March 11, 2009: Dollar Bank announced today the addition of reverse mortgages to its asset product offerings. "Dollar Bank believes many senior citizens are struggling day-to-day to live comfortably or make ends meet," said Mike Henry, Dollar Bank Vice President of Mortgage Lending. "As a result of this, more and more older Americans are turning to reverse mortgages as a solution to their financial needs. With the help of a reverse mortgage, these seniors find they can cope with the myriad of financial pressures that include rising out of pocket costs for medical care and prescription drugs as well as increasing property taxes on their homes." Adult children of seniors are also finding that a reverse mortgage can aid in making their parents’ retirement a period of enjoyment instead of one of constant financial worry.

An approved lender by the U.S. Department of Housing and Urban Development (HUD) and the National Reverse Mortgage Lenders Association (NRMLA), Dollar Bank entered into the reverse mortgage business over the past year. The bank decided to place these reverse mortgages into its asset portfolio and retain the ownership of its servicing. This means, customers will be able to reach a local representative if they have any questions. Dollar Bank believes reverse mortgages represent the additional loan product it needed to fulfill its goal of becoming the lifetime provider of loans to its customers.

The reverse mortgage business has surged in popularity and grown substantially in recent years. For example, according to Neighborhood Watch statistics gathered by HUD, the number of reverse mortgages originated nationally totaled 115,176 loans in the 2008 calendar year, a 432% increase from the 21,636 reverse mortgage loans originated in the 2003 calendar year. NRMLA attributes the surging popularity of reverse mortgages to several factors. First and foremost, a homeowner must be age 62 or older to take advantage of a reverse mortgage. This means, Baby Boomers are becoming age-eligible. Generally more familiar with financial issues, this generation is now realizing that traditional retirement financial tools, such as pensions and IRAs, are not enough to carry them through their golden years comfortably. Now, through greater consumer awareness of and comfort with the numerous benefits of a reverse mortgage, American seniors and their children are realizing that using the equity in their homes to assist with their increasingly tighter budgets is really a smart option.

Recognizing the increasing need for reverse mortgages in the communities they serve, Dollar Bank plans to host four free reverse mortgage seminars in their branches throughout the Pittsburgh area from April to May. Anyone is invited to attend. Advisors and relatives of seniors are also encouraged to come and learn about the advantages of a reverse mortgage and talk with their reverse mortgage experts. "A reverse mortgage may not always be the right financing option for someone," states Henry. "One of the benefits of our free seminars is for people to find out exactly how a reverse mortgage works and to ask questions in a comfortable setting. Our goal is to help people make the right financial decisions based on their needs."

Reverse mortgages were originally offered in the U.S. in the early 1980s, gaining legitimacy and attention when HUD announced an insured product, the Home Equity Conversion Mortgage (HECM) in 1989. And more recently, the Housing and Economic Recovery Act of 2008 approved the HECM for Purchase Program in January 2009. This allows seniors to make a large downpayment on a new home and utilize the reverse mortgage as permanent financing. Dollar Bank offers both of these reverse mortgage options. The HECM is insured by the Federal Housing Administration (FHA) and accounts for about 90% of all reverse mortgages made today. Both options provide cash, a line of credit, or a monthly income for as long as the person lives in their home. A reverse mortgage is not repaid until the borrower moves out of their home permanently, and the repayment amount cannot exceed the value of the home. After the loan is repaid, any remaining equity is distributed to the borrower or borrower’s heirs/estate.

For more information and FAQs on reverse mortgages and a schedule of seminars, visit dollarbank.com/ReverseMortgages.

About Dollar Bank
With assets of $5.8 billion, Dollar Bank is the largest independent mutual bank in the United States, employing more than 1,140 people with over 50 offices throughout southwestern Pennsylvania and northeastern Ohio. For more information, visit www.dollarbank.com.

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