Seniors Equity Release NCCP Changes Broker Information Kit

Transcription

1 Seniors Equity Release NCCP Changes Broker Information Kit

2 Overview The NCCP (responsible lending) has recently been expanded to include regulations which specify how our Seniors Equity Release (Reverse Mortgage) must be sold and offered to our customers Below is an overview of the changes. These are outlined in further detail on the following pages. Borrowers must be given a new Reverse Mortgage Information Statement Borrowers must be given a new Equity Projection Calculation Updated Seniors Equity Release Disclosure Document All borrowers must now be 65 years of age or older Additional information to be captured in Lendnet Updated Terms & Conditions, including Tenancy Protection Warning Go Live: Saturday 6 April 2012 Key Contacts for Queries or Questions: Your Partnership Manager

3 Equity Projection Calculator This is a new calculator which must be provided to the customer when they enquire or before they apply for the Seniors Equity Release, or upon the customers request: A copy should be submitted to Bankwest with your other supporting application docs The calculator is provided by ASIC Money Smart and can be found at How to complete? To begin, click on Settings and choose Bankwest as the lender. Complete the required information in each step. On the final screen, select Print Results. This will generate a PDF that needs to be provided and explained to the customer

4 Important Changes Reverse Mortgage Information Statement This is a new document which must be provided to the customer when they enquire about or before they apply for the Seniors Equity Release, or upon the customers request A copy should be submitted to Bankwest with your other supporting application docs The Reverse Mortgage Information Statement can be found at ion_statement.pdf Updated Disclosure Document The Seniors Equity Release Home Loan Disclosure document has been updated to include a clause which the customer has received both the new information statement and equity calculation This document should continue to be completed and signed by both yourself and the customer, and submitted with your supporting application docs The updated document can be found at Borrower Age All borrowers must now be 65 years of age or older

5 Additional Information Additional Lendnet Information Capture There are 2 additional mandatory Lendnet questions which the customer must answer. The customer cannot answer these questions until the new information statement and equity calculation have been provided Question 1: Have you considered your possible need for aged care accommodation in the future? Yes I have considered this and want to proceed today No I want to consider this before proceeding further Question 2: How important is it to leave equity in your home to your estate Not important at all Quite important, but I would still like to proceed Extremely important, so I will consider this before proceeding further Note: If you are not submitting your application directly via Bankwest Lendnet, you will need to provide your customers answers to these questions in a new Responsible Lending Additional Inquiries document, which can be found at _mortgage_v1.0.pdf

6 Important Changes Updated Terms & Conditions, including Tenancy Protection Warning A new version of the Bankwest Home Loan Terms & Conditions, dated 5 April 2013 will be released and provided to your customer with their contracts You should highlight to your customer the important information regarding the rights of any spouse, partner or other resident in their home who will be affected by the customers reverse mortgage. This can be found on Page 10 under section B.7 Reverse Mortgage (extract below) Form 7A Disclosure about credit contracts reverse mortgages The rights of any spouse, partner or other resident in your home will be affected by this reverse mortgage. When this reverse mortgage needs to be repaid, if another person (including a spouse, partner or other family member) is living in your house THEY WILL HAVE TO MOVE OUT SO YOUR HOUSE CAN BE SOLD. BEFORE YOU SIGN THE CONTRACT FOR THIS REVERSE MORTGAGE You should carefully consider whether you want other people to continue living in the house, even if, for example, you move into aged care accommodation. To help you, you may wish to obtain independent legal advice. If it is important to you that other people who live with you continue to have the right to remain in your home, then you should: find a reverse mortgage that provides rights to other residents; consider options other than a reverse mortgage. If you need further information, go to MoneySmart shows you how reverse mortgages work. Or call the Australian Securities and Investment Commission infoline on The National Information Centre on Retirement Incomes (NICRI) also provides a free independent telephone information service to consumers covering all aspects of reverse mortgages. To speak to an information officer from NICRI call