Terme Mortgage, Inc. Offers Lower Margin HECMs and Fixed Rate Reverse Mortgages

  
    
  
  
    
      Terme Mortgage, Inc.(the “Mortgage Company”), 
      a subsidiary of Terme Bancorp, Inc., (the “Company”) 
      (Pink Sheets: TEMB.PK) announced today that it is one of the first 
      lenders in Illinois to offer the federally insured, variable rate Home 
      Equity Conversion Mortgage (HECM) product with a lower margin and a 
      separate, fixed rate Reverse Mortgage product.
    
    
      The lower margin of 100 basis points versus the 150 basis points 
      previously offered will provide seniors greater access to their home 
      equity than the previously released products. The lower margin will 
      reduce the interest costs on the HECM over the life of the loan, 
      providing the senior with a larger amount of equity to utilize. For a 
      borrower who is 65 and has a house in Cook County, Illinois, the 
      borrower may be eligible to qualify for an additional $15,350 assuming 
      their home is worth approximately $300,000 with no mortgages, liens or 
      repairs compared to the traditional HECM with a margin of 150 basis 
      points(a).
    
    
      “The lower margin gives seniors additional 
      equity access from their homes and provides for a lower interest rate 
      which will make Reverse Mortgages a more attractive option in retirement 
      planning. While this is an exciting new feature, we expect that further 
      new products and enhancements that will reduce rates and fees further, 
      making a Reverse Mortgages a more intriguing product for additional 
      seniors,” said George Yedinak, President of 
      the Mortgage Company. “By maintaining our 
      focus as an independent correspondent mortgage lender, we are able to 
      offer the broadest range of Reverse Mortgage products offered by many 
      lenders to suit the needs of each individual and providing a better 
      experience for consumers interested in Reverse Mortgage solutions.”
    
    
      Terme Mortgage, Inc. is headquartered at 1255 N. State Parkway #1 South, 
      Chicago, Illinois and can be found on the Internet at http://www.termemortgage.com 
      or can be reached at 866-386-4951.
    
    
      Terme Bancorp, Inc. is headquartered at 5818 S. Archer, Rd. in Summit, 
      Illinois and can be found on the Internet at http://www.termebancorp.com.
    
    
      (a) Estimated as of April 3, 2007