Bluestone Equity release will require all mortgage brokers who wish to introduce its product to have achieved SEQUAL-accredited Reverse Mortgage Consultant (RMC) status, it announced today.
SEQUAL, the Senior Australians Equity Release Association of Lenders, is a not-for-profit association that aims to educate senior citizens about releasing equity in their retirement.
Bluestone Group chief executive Peter McGuinness said the initiative is designed to make sure Bluestone’s customers receive guidance from the highest level of trained advisers who specialise in the reverse mortgage market.
“Bluestone has been a strong supporter of SEQUAL since its foundation in 2005 and we were particularly keen to see the development of a principles-based framework for mortgage brokers in the absence of any regulation governing the distribution of the product,” he said.
“The SEQUAL RMC Accreditation is designed to provide additional protection to consumers by ensuring there are properly-trained professionals available to guide them towards the best solution,” SEQUAL executive director Kieren Dell said.
A Choice shadow-shop survey conducted last year found that there was “a poor standard of product information and advice” given to potential reverse mortgage customers.
According to the Choice, very few reverse mortgages are sold by licensed financial advisers.
The Choice shadow-shop found that the majority of brokers and salespeople encouraged borrowers to take the maximum possible loan and didn’t give consumers all the information they need to make an informed decision.
