LOE to get harder

[softmonkey]

"THE $3 billion reverse mortgage industry is set for a major overhaul with new laws and tougher disclosure rules expected in the new year. The Federal Government plans to ban contracts which allow negative equity to build up on a reverse mortgage and will also beef up information disclosure requirements to ensure people fully understand what they are getting into." Read more

Will this affect anyone planning to live off equity? While the mortgages aren't being banned it sounds like the figures are going to be a lot more conservative.

 

[D.T.]

Reverse mortgages have nothing to do with LOE

 

[Marty McDonald]

I think every reverse mortgage lender is part of the SEQUAL group which means they voluntarily adhere to having a no negative equity clause in their contracts anyway.

Its not really a big market me think. I have done 1 in 8 years and it was was for $50,000There are issues with them as you are dealing with old folks needing leagl and financial advice (which is good I suppose) and centrelink rulings etc...not something i want to be involved in really.

 

[Rolf Latham]

I have a few under my belt.............they are truly a great tool if used properly.

The neg equity position is already pretty much insured due to the higher rates they can get away with.

Lets hope gov intervention doesnt kill what is a usefu product

ta
rolf