Seattle Savings Bank Makes S&P's Reverse Servicer List.

Detroit -- As people live longer and retiree benefits are cut in corporate reshuffles, reverse mortgages are gaining attention. Standard & Poor's Rating Services added Seattle Savings Bank and its subsidiaries to its October list of select servicers as the first company listed as a servicer of reverse mortgage loans.

Reverse mortgage loans, which allow seniors age 62 and up to cash out home equity, are increasing in popularity as people live longer and maintain a higher quality of life, allowing them to care for themselves and their homes as they age. Seattle Mortgage Co. is boasting about its listing and a 60% increase in reverse mortgage loan originations over the past year. The company uses a variety of lenders across 27 states to provide the loans, making the company one of the nation's top servicer of reverse mortgages.

An increase in lenders who offer the reverse loan products could help seniors who experience company cost cutting or live in economically challenged areas of the country increase cash flow to pay bills and living expenses.

Senior borrowers in Detroit could find the loans beneficial since the automakers and their suppliers have made changes to retiree health benefits here and nationwide. According to AARP, prescription drug costs for Americans over 50 have risen about 6.1% over the last year. AARP said that figure is increasing at twice the rate of inflation.

The Detroit area population includes a large base of retired autoworkers and white-collar executives from General Motors, DaimlerChrysler and Ford Motor Co. In the retail industry, JC Penney, which operates several Detroit area stores, said it would be eliminating its health care for retirees age 65 and over in 2006, while making cuts to benefits for younger retirees.

The new category added to Standard & Poor's Servicer Evaluations program follows Seattle Savings Bank request to one of the credit ratings companies to be ...