A group of reverse mortgage brokers have sought to defuse consumer negativity by forming a new reverse mortgage broker group that offers retirees safeguards through a strict code of conduct.
Comprised of more than 40 brokers Australia-wide, Fortus insists on its members meeting a number of requirements surrounding the provision of appropriate reverse mortgage recommendations.
All Fortus members must hold Reverse Mortgage Consultant accreditation from the Senior Australian Equity Release Association of Lenders (Sequal) and can only recommend reverse mortgages offered by lenders who are members of Sequal.
In addition, the Fortus code of conduct mandates that members identify and recommend those reverse mortgages with the fewest possible default conditions that impact the No Negative Equity Guarantee offered by Sequal lender members.
Fortus members are also required to follow the Mortgage and Finance Association of Australia’s equity release code of proper process or CPA Australia’s guidance notes for advising on reverse mortgages.
The same standards will apply to home reversion schemes and shared appreciation mortgages once these equity release products become available.
“Retirees need to be confident that they are dealing with a properly educated and qualified broker,” Fortus chair Craig Swan said.
“Fortus has now emerged as a platform to identify and implement industry best practice standards and to promote our members as leaders in the field of home equity release.
“As home reversion schemes and shared appreciation mortgages become more widely accessible, we intend to continue to benchmark the standards for industry best practice, thereby continuing our focus on servicing Australian seniors.”
