The Finance Brokers Association of Australia has commissioned a reverse mortgage training course for brokers.
A reverse mortgage, or equity release, is a home loan typically sold to people over 60 years of age that allows customers to borrow money while using the built-up equity in their home as security.
Borrowers are not required to make repayments while living in the home but are charged interest. The loan and attached fees and interest is paid in full when the home is sold or the owner moves into aged care or dies.
FBAA executive director Peter White said that the course was “much-needed” given the collapse of Sequal, the previous equity release training provider, earlier in the year.
Mr White said that the course would be available to all industry professionals, regardless of whether they are an FBAA member.
AAMC Training Group, the FBAA’s preferred registered training organisation, has been chosen to supply the course “given their skills and expertise in providing quality, high-end educational content,” according to Mr White.
Michelle Firth, an AAMC training spokesperson, commented: “When brokers talk to clients about a reverse mortgage they need to understand the full process. They need to know it’s an option for people, particularly seniors.
“It’s imperative that professionals such as finance brokers understand the fundamentals to successfully engage clients, understand the risks, effectually market equity release products, recognise advice limitations and work proficiently with other professionals in the client advice process,” Ms Firth added.
The course will consist of three modules:
Module 1 – Fundamentals
Module 2 – Equity release products explored
Module 3 – Client support process and working collaboratively
Brokers wishing to sign up can access the course on the AAMC Training Group website.
[Related: FBAA calls for independent actuary]