The government, through assitant treasurer Bill Shorten have recently tabled the second phase of the new National Consumer Credit Protection (NCCP) legislation, this includes some big changes to the reverse mortgage industry and better protections for consumers.
New Reverse Mortgage Rules
- All lenders must now provide a NNEG (non-negative equity guarantee) with reverse mortgages, meaning that you can never owe more than the house is worth.
- Other increased protections for seniors in regards to reverse mortgages
The SEQUAL body which consists of the majority of reverse mortgage lenders has supported the new leglisation as all of it’s memembers are already providing NNEG’s. In fact it looks like the government and SEQUAL have worked on this new legislation together to avoid unnecessary regulatory burden on the reverse mortgage burden.
You can read the legislation in full here. This page will be updated as more information comes to hand.
