The developer of the country's only private reverse-mortgage program for elderly homeowners who want to cash in on the value of their homes while they are still in them has no plans to expand the program to include District of Columbia residents.
James Burke, president and founder of American Homestead Mortgage Corp. of New Jersey, said, "We have no present plans to come to D.C., nor do we foresee a time when the market situation there would change sufficiently to make it worth our while."
In late February, American Homestead began offering reverse mortgages to qualified Maryland homeowners 62 and older through Standard Federal Savings & Loan's 21 branches in the state. Since then, about 270 persons have applied for the program, according to Robert B. Schwartz, an officer of Standard Federal in Gaithersburg.
American Homestead's Burke said the bank would not consider the District for the "same reason we decided not to go to Delaware . . . too few people. The economics just do not work for us in D.C. We could not generate the volume of transactions in Washington necessary to make a return on our investment. We are a bank, not the tooth fairy."
Burke said his bank plans to expand the program to Virginia sometime in 1987 after getting licensed and bonded there. "We will definitely go to Virginia. It is our next targeted state and, hopefully, it will be by 1987," Burke said.
The Individual Reverse Mortgage Account program gives elderly homeowners a monthly payment based on their age and the age and value of their home for as long as they continue to live in it. When the home is sold or the resident dies, the principal and the interest -- currently 11.5 percent -- is deducted from sale proceeds.
IN THE BUSINESS . . . USLICO Corp., a life insurance holding company, announced this week that its subsidiary, International Bank, is selling its office building at 1701 Pennsylvania Ave. NW to Atlantic Freeholds, a general partnership consisting of Grosvenor International Ltd. and two British pension funds. No price was disclosed, but the building is estimated to be worth more than $40 million . . . The Suburban Maryland Building Industry Association is sponsoring its second annual flea market today at Casey's Barn, 810 S. Frederick Ave. in Gaithersburg from 8 a.m. to 4 p.m., at which all manner of do-it-yourself items will be for sale. All proceeds go to Operation Tom Sawyer Foundations Inc., which the trade group administers to support the Boys & Girls Homes of Montgomery County and the Prince George's Family Crisis Center . . . CEI Construction Inc. has changed its name to The Clark Construction Group Inc., which includes George Hyman Construction Co., OMNI Construction Inc., HRW Systems Inc., Clark-Morris Co. Inc., Clark-Kenith Inc. and Clark-Fitzpatrick Inc. . . . Mortgage bankers and mortgage insurers have developed a new "buyer-seller affidavit" to more accurately measure the true value of a home sale. The disclosure form, devised by the Mortgage Bankers Association of America and Mortgage Insurance Companies of America, indicates the presence of such seller inducements as builder buydowns of interest rates or inclusion of appliances in the selling price to give a better idea of the true loan-to-value ratio . . . Maxine Schwartzman of Long & Foster's Potomac office has won the top prize in the Montgomery County Board of Realtors' annual sales competition, and David Merkle of Long & Foster's Bethesda office was named 1986 Distinguished Sales Agent of the Year. Ron Rush of the firm's Fair Oaks office totaled $17 million in sales last year and has been named as the company's "Overall Company Top Producer". . . Dallas C. Wood of RE/MAX Xecutex in Alexandria has been named the firm's top 1985 producer, with $19 million in residential sales . . . Washington Corp. and National Development Mid-Atlantic Inc. are planning to jointly develop Arlington Square, an eight-story office-retail building and a 139-unit apartment building on North Fairfax Drive in Arlington . . . Nearly 750,000 square feet of business space, most of it for offices, was leased or sold in Alexandria in the fourth quarter last year, according to the Alexandria Chamber of Commerce . . . The architectural and planning firm of Victor Smolen and Associates has changed its name to Smolen/Rushing + Associates Inc., and will have offices at 164 Rollins Ave. in Rockville. Architect Paul Dana Rushing, a member of the firm for three years, is now vice president . . . Construction contracts for the Washington area are up 16 percent for the first two months of the year compared with 1985, which is an increase from $619.8 million to $716.8 million, according to the F. W. Dodge Division of McGraw-Hill Information Systems Co. . . . Heritage Homes Realtors of Vienna and Virginia Homes & Real Estate of McLean have combined . . . The Anti-Defamation League honored the Montgomery County Board of Realtors this week with its Civic Commitment Award.
PERSONNEL FILE . . . Warren S. Oliveri has been named senior vice president of Weaver Bros., the Chevy Chase real estate and mortgage banking firm.