Reverse Mortgage providers to face scrutiny
The Australian Consumers Association is set to continue its criticism of reverse mortgage lenders. A critique of the products in the April issue of Choice magazine identified the negative equity guarantee and the general complexity of contracts as key problems. The Sheet has also heard on the industry grape vine that reverse mortgage products are being marketed through home-care type organisations. The ACA says brokers are advising customers to take out a reverse mortgage for the purpose of investing and thereby collecting two commissions.