Reverse Mortgage Accreditation Module

Transcription

1 Reverse Mortgage Accreditation Module This Booklet should be read in conjunction with the Heartland Reverse Mortgage: Product Brochure Fact Sheets Frequently Asked Questions Application Form These forms are subject to change. As part of our commitment to ensuring the highest professional standards, this package has been designed to assist you in understanding Heartland Seniors Finance and the Heartland Reverse Mortgage. At the end of this module, you will be asked to complete a short assessment to measure your understanding of the course material. You are required to achieve a 90% pass rate for the assessment. IMPORTANT NOTICE This information has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on this information, consider the appropriateness of the information having regard to their individual objectives, financial situation and needs and, if necessary, seek appropriate professional, financial and taxation advice. Australian Seniors Finance PTY LTD // Seniors Finance PTY LTD Level 9, 63 Exhibition Street, Melbourne // PO Box 18134, Collins Street East, Vic 8003 Tel // Fax // enquiries@seniorsfinance.com.au Seniors Finance PTY LTD // Australian Credit Licence No // ACN Seniors Finance PTY LTD // Australian Credit Licence No // ACN

2 INTRODUCTION OVERVIEW OF HEARTLAND SENIORS FINANCE COMPANY BACKGROUND Heartland Seniors Finance Pty Ltd (Heartland) has been specialising in home equity release products for seniors since 2004, previously under the brand Australian Seniors Finance (ASF). We are managed by a team of professionals with a proven and highly successful track record in the provision of financial services and mortgages, both here and internationally. On the 1st of April 2014, the ASF Group was acquired by Heartland HER Holdings Limited (HHHL), a wholly owned subsidiary of Heartland New Zealand Limited (HNZ) which is listed on the NZX Main Board. HHHL and Heartland Bank Limited are HNZ s primary operating subsidiaries. Key Facts about Heartland Bank Limited, as at 30 June 2014: Standard & Poor s credit rating of BBB Total Assets $3,016.9m Net profit after tax $36.0m Founded in January 2011 (as a merger between several building societies and finance companies) Bank Registration December 2012 More information is available at: We specialise in providing our customers with the opportunity to unlock the equity they have worked hard to build up in their homes and, in so doing, enhance their lifestyles for years to come. More information about Heartland Seniors Finance can be found on our website PRODUCT SUPPORT AND STRENGTH While we believe the thinking and planning behind the creation of our Reverse Mortgage is revolutionary and is in many ways complex, the benefits to our customers are remarkably straight forward. Our testing process is rigorous and, coupled with a comprehensive internal reserving structure, forms an integral part of the process that provides the underlying strength to this product. TARGET MARKET The Australian Bureau of Statistics projects that the over 65 population will increase by 2.5m in the next 20 years (from 3.2m to 5.7m in 2031 ). It also confirms that the over 65 households have a home ownership rate of 84.6%. This projects a current possible market of 2.7m individuals, increasing to 4.8m in the next 20 years. As there are only 42,000 reverse mortgages on issue in Australia at present, there is significant potential growth. Heartland Portal Accreditation Module July

3 Ageing Population If not dealt with properly now, there is no doubt that one of the biggest global challenges of the 21st century may become the ageing population. The world is looking head on into this Tsunami of seniors, with the expectation that by 2050, the number of people aged over 60 will double to more than 2 billion, or 22 percent of global population. With life expectancy in more than 20 developed countries already above 80 years of age, the economic and social impact of an increasingly healthy, ageing populace is obvious. For example, in Australia the cost of aged care is expected to double by Given this, it becomes increasingly obvious why the recent Aged Care Reforms, introduced through Federal Parliament, opened the gates for Home Equity Release products as a viable vehicle for seniors to meet their ongoing costs and to assist them to live in their homes for longer or, where living in their home is no longer viable, products that empower seniors and their families with choices in how to fund residential aged care costs. Other Australian providers There are a few other providers with similar products to Heartland. However, one significant difference between our product and others is that we are the only group who specialises in home equity release, and sole company to accept applicants from the age of 60. We are also one of only a few that allows secondary properties (Holiday Homes and Investment Properties) as security and offers a product for Aged Care. Heartland Portal Accreditation Module July

4 THE HEARTLAND REVERSE MORTGAGE THE HEARTLAND REVERSE MORTGAGE: OVERVIEW This section provides an overview, and details the basics, of the Heartland Reverse Mortgage: the interest rate the loan repayment guarantee a number of case studies basic client decision making considerations fees and administration other important criteria This information should be read in conjunction with our Product Brochure, Fact Sheets, Frequently Asked Questions and Application Form. PRODUCT BASICS General Product Information Reverse Mortgage Unlike a conventional mortgage which requires the client to make regular repayments, the Heartland Reverse Mortgage allows our clients the freedom to access equity in their homes without the need to make repayments. The loan is available to those who meet our age, ownership and property criteria. Aged Care Option Similar to the standard Reverse Mortgage, but carries a key distinction by waiving the requirement for the borrower to reside in their home. The waiver is for up to five years from the date of funding. This loan allows our clients to access equity in their residential property while they are living in residential aged care. The loan is available to those who meet our age, ownership and property criteria. The Aged Care Option is for a loan for a maximum term of 5 years. If any customer resides in the property and intends to remain there, this Aged Care Option is not suitable. Secondary Properties The Heartland Reverse Mortgage and Aged Care Options also allow our clients to access equity in their non-owner occupied homes (holiday home or investment property) for any personal purpose. This option carries a 10% discount to the scale LVR relating to age. For example if a 75 year old applied the applicable maximum LVR would be 27% (30 x.90 = 27). The loan is available to those who meet our age, ownership and property criteria. Heartland Portal Accreditation Module July

5 Examples of suitable borrowers 1. Therese (64 yrs. old) and Wallace (60 yrs. old) own their home. They want to take out a Heartland Reverse Mortgage. In this case, Therese and Wallace would be Applicants and Nominated Borrowers as they meet the required age. The loan does not need to be repaid until the death of the last remaining nominated borrower. In this case they would be eligible. 2. Jules (68 yrs. old) and Wendy (62 yrs. old) want to take out a Heartland Reverse Mortgage. Wendy owns the house. In this case, Wendy and Jules must both be Applicants and Nominated Borrowers, but Wendy is the sole owner providing the security as she owns the house. The loan value is based on the youngest Nominated Borrower s age, no matter who owns the property. In this case they would be eligible. 3. Geoffrey (82) lives in a home that is owned by his son, but he wants to take out a Reverse Mortgage Loan. The son is happy to put the property up as security. In this case he would NOT be eligible. 4. Fred is 85, a widower for six years and a homeowner. He has now been approved for residential aged care. He wants to access some of the equity in his former home to assist meet the cost of entering care. In this case he would be eligible. 5. James and his wife Victoria are both 75 and have owned a holiday home on the south coast of NSW for many years. They are reluctant to sell it as they and their family use it regularly but are in need of funds as their aged pension has been cut off and their superannuation funds are now low. In this case they would be eligible. Heartland Portal Accreditation Module July

6 THE HEARTLAND REVERSE MORTGAGE Purpose of Application The loan can be for any purpose. For example, a loan could be used for: debt consolidation house renovation purchase of a new car medical treatment in-home care helping children and/or grandchildren a holiday create a regular income stream to supplement pension or superannuation income other leisure and lifestyle activities. As a secondary property may also be used as security, the Heartland Reverse Mortgage could also be used to pay: a refundable accommodation deposit a daily accommodation payment create an income stream consolidate debt repairs and maintenance Purpose of Aged Care Option Typically to fund a move into permanent long-term care, however other purposes are accepted. For example, a loan could be used to pay: a refundable accommodation deposit a daily accommodation payment home maintenance additional care and service costs Registered Owners and Nominated Borrowers Up to two people, both aged 60 or over, can apply for the Reverse Mortgage where at least one of them owns, or is going to purchase, a security property. Special consideration may be allowed for Family Trusts. Please refer to the Heartland Broker Support Team for further guidance regarding property ownership or other loan application queries. Minimum Property Value The minimum property value Heartland will consider is $200,000. The location and condition of the property is important and will influence the minimum property value accepted. Heartland Portal Accreditation Module July

7 Minimum Loan Minimum Lump Sum: $10,000 Minimum Regular Payment: $2,500 per annum (can be a quarterly payment of $625) Minimum Cash Reserve Drawdown: $2,500 Minimum Further Advance: $5,000 Maximum Loan The maximum amount a client can borrow is based on the value of the property and the LVR appropriate to the age of the youngest applicant. There is no maximum loan amount. Payment Options The loan can be disbursed by the following options: Lump sum payment Regular advances either quarterly or annually over 5 or 10 years Cash reserve component which enables the client(s) to reserve an amount up to the difference between the funds initially taken and the maximum loan entitlement. Once the loan has been approved they can apply for approval to draw on this reserve at any time throughout the life of the loan. All of the above can be used in combination. Loan to Value Ratio (LVR) As our clients get older, the amount they are able to borrow increases. Beginning at 15% at 60 years of age, this increases by 1% every year thereafter until the age of 90 where the rate is 45%. The table below provides a guide as to the percentage of home values (Loan to Value Ratio) that are available under our Reverse Mortgage Loans. The maximum loan amount is the LVR multiplied by the property valuation. Examples of LVRs Age Max. LVR% Joint borrowers In the case of joint borrowers, the age of the younger borrower is used to establish the maximum LVR. For instance, if there were two clients, one 78 years old and the other 82, with a property value of $580,000, the maximum loan amount would be 33% x $580,000 = $191,400. Residents other than Nominated Borrowers If the property has residents other than Nominated Borrowers, the following conditions will apply: if rented, the tenancy agreement must be reviewed and approved by Heartland and cannot be longer than 12 months in term if there are other occupiers in the property, an other occupier declaration must be signed, this is issued with the loan agreement Heartland Portal Accreditation Module July

8 Security The Heartland Reverse Mortgage is a loan against the security of a Nominated Borrower s residential property. This includes a secondary property such as an investment property or holiday home, and for these loans the LVR is scaled down by 10%. It may be a former owner occupied home or secondary property in the case of the Aged Care Option, with a maximum term of 5 years. Property criteria The property must be of conventional construction and in good condition. It must also be mortgage free (unless the loan is used to repay any outstanding mortgage). We will consider rural residential properties on land up to 10 hectares in size. Properties of a larger size may be considered on a case by case basis, please contact our Loan Administration team for assistance. Property valuation All loans will require a registered valuation which is completed by a Heartland determined Australia-wide panel of independent valuation firms. Property classification and location While certain unconventional, large or rural residences may not be eligible, our overall aim is to provide our customers with the resources to use their assets to enhance lifestyles. We do have some location restrictions in rural and regional locations. Please contact Heartland if you have any queries regarding a particular property. Each application is reviewed on a case by case basis. Heartland do not generally lend against retirement village villas. Portability The loan may be transferred to a new property subject to Heartland s current terms and conditions (some fees are payable). Settlement must be on the same day, or Heartland must do a separate discharge and new loan. Further Advances Further advances are allowed, subject to prevailing terms and lending criteria at the time. Further advances will require a full reassessment, including application, valuation and further independent legal advice. Equity Protection Option (EPO) The applicant(s) can choose to protect 10%, 20% or 50% of the net sale proceeds from the sale of their home. This means at all times the percentage protected is theirs, irrespective of their loan balance or property value, as long as all Terms and Conditions are adhered to through the life of the loan. There is a fee payable when the loan option is activated. Choosing the Equity Protection Option will reduce the loan amount available by the percentage selected. 10% or 20% option can be activated anytime throughout the term or the loan 50% is available only at the time of original application Heartland Portal Accreditation Module July

9 Interest There is an interest component to the loan. This accrues at our published variable rate and is calculated daily and charged monthly until the loan has been repaid. The interest rate includes the cost of the No Negative Equity Guarantee. Annual Percentage Rate Comparison Rate Heartland publishes a Comparison Rate and makes the schedule available at its premises. A Comparison Rate Schedule is also available on our website: Our interest rates, comparison rate schedule and fees and charges should be referred to in addition to this document. Fees The fee structure is dependent upon the requested loan structure, property valuation and the nature of the loan required. The fees and charges are detailed in the applicable Fact Sheets. Repayment The Heartland Reverse Mortgage Loan, including the Aged Care Option, does NOT require regular loan repayments, as is the case with a traditional mortgage. However, payments are able to be made at any time (as long as the loan is on a variable interest rate). Repayments are not available for later redraw. For the standard Heartland Reverse Mortgage, principal plus interest and charges must be repaid when the last Nominated Borrower passes away, sells the property, moves into permanent long-term care or moves out of their home (whether or not it was the security property). For the Aged Care Option, principal plus interest and charges must be repaid when the last Nominated Borrower passes away or when the 5 year term expires. Other than at the Aged Care Option, there is 12 months to repay the loan from the date the last Nominated Borrower passes away or moves into aged care or out of their home. If the property is sold, any balance remaining after the loan has been repaid is for the borrowers or their estate as appropriate. Early Repayment Fees Variable Rate If a client chooses to repay the loan at any time, no early repayment fees apply, only the loan balance including discharge fee are payable on exit. There is a discharge fee. Fixed Rate Fixed rate loans will be subject to break fees, except as a result of death or entry into long term care. The break fees are restricted to the actual costs incurred. Heartland no longer offers a fixed rate - this is only the case for existing loans with a fixed rate. Heartland Portal Accreditation Module July

10 No Negative Equity Guarantee The No Negative Equity Guarantee applies to all Heartland Reverse Mortgages. This means that the borrower or beneficiaries will never have to repay more than the net sale proceeds of the property, provided all loan conditions have been observed. This applies even if the loan, plus accrued interest and charges, exceeds this amount. Powers of Attorney Power of Attorney or Guardianship Order needs to be provided with the application if being signed under. A Power of Attorney will only be acceptable if: It is valid as an Enduring Power of Attorney; It is either lodged at the relevant Land Titles Office or an originally certified copy is provided prior to settlement; A Letter of Comfort is provided by nominated solicitor prior to settlement confirming that: the Power of Attorney has not been revoked; the relevant borrower is physically unable to sign the application or does not have the mental capacity to do so; and the borrowing is for the benefit of the Nominated Borrowers. A Guardianship Order will only be acceptable if: Order gives the administrator/guardian powers to act on financial matters A originally certified copy is provided prior to settlement with a statutory declaration confirming the order has not been revoked A Letter of Comfort is provided by nominated solicitor prior to settlement confirming that: the order has not been revoked; and the borrowing is for the benefit of the Nominated Borrowers. If a borrower is to sign the loan documents on their own behalf, but there are doubts regarding a borrower s mental capacity, a letter will need to be provided by a medical practitioner. The letter must confirm in their medical opinion that borrower is able to read and understand the loan documentation. Heartland Portal Accreditation Module July

11 CLIENT DECISION MAKING FOR A LIFETIME LOAN At Heartland, we recognise and accept that our clients require extra care and attention in ensuring they receive the appropriate product for them. We are focussed on ensuring clients can make their decisions in a low-pressure, cooperative and caring environment. Our aim is that their relationship with Heartland Seniors Finance and your organisation is beneficial and valued by all parties. Whilst we have every confidence that our Reverse Mortgage can offer clients a considerable number of benefits and advantages, we encourage them to involve others in the decision making process, as any financial decision for our target clients is usually a major one. Therefore, applicants should be encouraged to: Seek advice, as appropriate, from trusted advisers (i.e. accountant, financial planner) Talk to their family Discuss their loan with Centrelink as to any effects the funds may have on their pension or other Government entitlements When the loan offer is sent out, the client(s) must obtain independent legal advice from a registered and practicing solicitor of their choice. Heartland Portal Accreditation Module July

12 CASE STUDIES You have now seen all of the components of the Heartland Reverse Mortgage. Let s consider the key parts by examining a case study. MARLA Marla is a widow aged 75. She owns two properties, an unencumbered owner occupied home and a beach house, and wishes to create an income stream to supplement her pension and small superannuation incomes. Her main residence is worth $700,000. The second property is worth $350,000. She wants a regular payment loan of $25,000 per annum for 10 years Does she meet the criteria? Based on the information supplied, the loan can be reviewed as follows: Against the family home LVR = 30% Therefore, the maximum loan amount = $700,000 x 30% = $210,000. If Marla is seeking to borrow $25,000 per annum over 10 years, the amount of $250,000 falls outside the borrowing parameters. The maximum annual payment available would be $21,000 for 10 years Regarding Marla s beach house, the following key features have been met: the property value is over $200,000 the client is over 60 years old the client owns the property (i.e. mortgage free) Heartland would be able to separately lend against her beach house LVR = 27% (30 x.90 = 27) Therefore, the maximum loan amount = $350,000 x 27% = $94,500. Marla may borrow $4,000 per annum over 10 years to make up the shortfall on loan against the family home The maximum annual payment available would be $9,450 for 10 years Marla will be required to draw $10,000 upfront as a lump sum. Regular payments are payable on the anniversary of the loan. The first regular payment may be incorporated into the $10,000 initial drawdown if requested by the client. Heartland Portal Accreditation Module July

13 CASE STUDIES MIA Mia is aged 69. She wishes to use her unencumbered home as security. Her property is worth $560,000. She wants a regular payment amount of $15,000 per annum for 3 years. What is the loan amount? What conditions are not met and what needs to happen to meet the Heartland Reverse Mortgage requirements? Based on the information supplied, the loan can be reviewed as follows: In this case, the following key features have been met: the property value is over $200,000 the client is over 60 years old the client owns the property (i.e. mortgage free) Key feature not met: regular payment requirement has not been met (these need to be over 5 or 10 years) What is the amount Mia can borrow against the property? LVR = 24% Maximum loan amount = $560,000 x 24% = $134,400 Although Mia would meet the majority of loan requirements, she would not meet the term required for the regular payment option she is considering. Heartland only offers the regular payment option over a 5 or 10 year period. These payments can be made quarterly or annually, therefore Mia would need to adjust the 3 yearly payments to at least 5 years. If she chose to take out regular payments for 5 years, this would be within the maximum loan amount available ($15,000 x 5 = $75,000). Another possible option would be to take a lump sum with the balance available placed in a cash reserve, to draw from as desired. Heartland Portal Accreditation Module July

14 CASE STUDIES ARTHUR AND DOROTHY Arthur and Dorothy are aged 78 and 72 respectively. They live in and own their retirement unit, worth $450,000. They want to borrow a $20,000 lump sum and receive a regular payment of $10,000 per annum for 5 years. What is the loan amount? What conditions are, or are not met, and what needs to happen to meet the Heartland Reverse Mortgage requirements? Based on the information supplied, the loan can be assessed as shown below. In this case the following key features have been met: the property value is over $200,000 both clients are over 60 the client owns the property (i.e. mortgage free) regular payment option conditions are met (5 or 10 year terms) What is the amount that can be borrowed against the property? 1. LVR = 27% (based on the youngest borrower) 2. Maximum loan amount: $450,000 x 27% = $121,500. In this case, Arthur and Dorothy could receive a $20,000 lump sum and annual regular payments of $10,000 for 5 years. The total borrowings would be $70,000 and thus would fall within the borrowing parameters. Arthur and Dorothy would meet the loan requirements and the instalment options they require. However, as the property is a retirement unit, Heartland may not be able to lend against it. It would depend on the ownership structure and the Certificate of Title, including any restrictions or encumbrances. Heartland does not generally lend on retirement village villas. However, if the property has an unrestricted and unencumbered Strata Title, such as a SEPP 5 development in NSW, applications may be considered on a case by case basis. Heartland Portal Accreditation Module July

15 CASE STUDIES IAN MCNALLY Mr Ian McNally, a widower, owns a home in Neutral Bay NSW worth approximately $1.7m and is aged 88. he has recently been assessed as needing residential aged care he and his family have decided on an aged care facility near his home after seeking proper financial advice Ian and his family are looking to retain his house rather than sell it to raise funds he requires $500,000 to fund the refundable accommodation deposit (RAD) He enquired whether Heartland could help with the above RAD If so, what is the loan amount? What conditions are or are not met and what needs to happen to meet the Heartland Reverse Mortgage - Aged Care Option requirements? Based on the information supplied, the loan can be assessed as shown below. In this case the following key features have been met: the property value is over $200,000 the client is over 60 years old the client is entering residential aged care and is looking to borrow against his former home What is the amount that can be borrowed against the property? 1. LVR = 43% 2. Maximum loan amount: : $1,700,000 x 43% = $731,000 This amount is sufficient to assist Ian meet his RAD obligation and Heartland would be able to assist with this loan. Heartland Portal Accreditation Module July

16 SUMMARY OF THE HEARTLAND REVERSE MORTGAGE Detailed below are some of the key points that should be understood about Heartland and our Reverse Mortgage. All Loans are for the 60 plus age group only The property cannot be solely owned by a third party, at least one Nominated Borrower has to be an owner The minimum property value is $200,000 and location is important The minimum loan available is $10,000. There is no maximum loan amount There is no set term for the Reverse Mortgage, with repayment to be made on a trigger event such as sale of the property or the passing of the last Nominated Borrower The Aged Care Option is restricted to the 5 year need to reside waiver term The amount available is determined by a Loan to Value Ratio (LVR) LVRs for Investment and Holiday Homes are scaled down by 10% No approved Nominated Borrower, if all conditions are met throughout the life of the loan, will have to repay more than the net sale proceeds of the property Our target clients require extra care and attention to ensure they receive the best advice If you are unsure of any of these areas you should review them before completing the accreditation test. BUSINESS AND PROFESSIONAL STANDARDS ETHICAL STANDARDS AND INTEGRITY Our Board and Senior Management recognises the importance of the value of ethical standards and conduct. Commitment to our core professional values and standards is required of all our employees and business partners. At Heartland we value integrity, truth and honesty in all our business activities and commit to treating our customers, business partners and staff with respect, courtesy and empathy. As part of ensuring our ethical standards and integrity are at the highest level, we trust that our partners demonstrate an affinity with the needs of our target market, the over 60s, and have met all appropriate industry requirements. Some of these standards and expectations include: appropriate industry registration appropriate qualifications and experience appropriate character and professional behaviour We are determined to ensure we are beyond reproach in regard to our honesty, integrity and ethics when dealing with clients. Heartland Portal Accreditation Module July

17 CODE OF PRACTICE Heartland was a founding member of SEQUAL (Senior Australians Equity Release Association of Lenders). Each Member of SEQUAL agreed its equity release product(s) would adhere to, and be measured against the following Code of Conduct in dealing with senior Australians, their families and advisers. As a minimum, Heartland Seniors Finance shall: 1. Treat all customers with respect and dignity 2. Participate in an ASIC approved External Dispute Resolution Scheme 3. Ensure that all products carry a clear and transparent no negative equity or non-recourse guarantee. That is, the Customer(s) will never owe more than the net realisable value of their property, provided the Terms and Conditions of the loan have been met 4. Strongly encourage Customer(s) to discuss the transaction with family members and to seek independent financial advice from a qualified financial adviser 5. Strongly encourage Customer(s) to discuss the transaction with Centrelink to ensure they fully understand the impact, if any, on their Centrelink entitlements 6. Ensure that the Borrower(s) obtain independent legal advice performed by the solicitor of their choice. Prior to the completion of the transaction, the Borrower(s) or their solicitor will be provided with full details of the benefits the Borrower(s) will receive, and the obligations they are entering into 7. Clearly and accurately identify all costs to the Borrower(s) that are associated with the transaction 8. Not assert or imply that the Borrower(s) are obligated to purchase any other product or service offered by the Member or any other company in order to enter into an equity release product 9. Provide in writing, a fair and complete package of equity release documents, covering the benefits and obligations of the product. This will include making available to the Borrower(s) and their advisers a tool illustrating the potential effect of future house values, interest rates and the capitalisation of interest on the loan 10. Ensure that all loans are written to comply with Australian Consumer Law and the consumer protection provisions of any other relevant Legislation, Regulation or Code. PRIVACY At Heartland, we realise the importance of preserving the privacy and security of personal, private and financial information that our clients give to us or allow us to obtain. It is critical and an expectation that as a partner of Heartland, you adhere to our client Privacy Policy. Our Privacy Policy covers: how we protect and maintain client personal, private and financial information what sort of personal, private and financial information we need from clients the reasons we need client s personal, private and financial information how client s personal, private and financial information will be used to whom we will need to disclose client personal, private and financial information privacy complaints processes It can be read in full at Heartland Portal Accreditation Module July

18 COMPLAINTS Heartland s Board and Management team are committed to building solid and valued relationships with our clients. As part of our strategy to ensure our clients are satisfied, we have implemented a comprehensive complaints management system. In brief, this means: customers can call our Customer Service Team on or between 9:00am and 5:00pm, Mon-Fri alternatively, they can write to Heartland at Level 9, 63 Exhibition Street, Melbourne, VIC, 3000 Heartland aims to resolve issues within 5 working days (subject to complexity) Heartland customers can also access the Financial Ombudsman Service to assist them. Complaint resolution information, as detailed to our customers, can be viewed on the Credit Guide. This can be viewed on our Application Form or website THE HEARTLAND SENIORS FINANCE PROMISES It is our commitment to ensure the highest professional standards when dealing with our clients. This is reflected in the Heartland Seniors Finance Promises. Our promises reinforce our commitment to our customers to ensure they are relaxed and comfortable with our product, processes and distributors. At Heartland Seniors Finance we recognise the immense trust that those taking out a Heartland Reverse Mortgage have placed in us. In return, and provided you meet your obligations under the loan, we make the following promises: PROMISE ONE Lifetime Occupancy Your home will remain the place you live in for as long as you choose. PROMISE TWO No Negative Equity guarantee The amount required to repay the loan will never exceed the net sale proceeds of the property*. PROMISE THREE Loan Repayment There is no requirement to make any loan repayment until the end of the loan. It is important that you are completely happy with all aspects of your Heartland Reverse Mortgage. To ensure this, your legal work must be carried out by a solicitor of your choice, who will represent your interests and work with you to explain and discuss your loan. * Provided you observe the terms and conditions of the Heartland Reverse Mortgage, you will not owe more than the net sale proceeds of your home and you can stay in your home for as long as you choose. Heartland Portal Accreditation Module July

19 SUMMARY OF HEARTLAND BUSINESS AND PROFESSIONAL As you have seen, we have put in place a number of processes to ensure our clients can expect the highest business and professional standards. Heartland has implemented processes and strategies for: ethical standards and integrity a voluntary code of practice a privacy policy a complaints resolution process The Heartland Seniors Finance promises PRIVACY ASSESSMENT ABOUT THE ASSESSMENT You have now reviewed the Heartland material and have reached the assessment section. You are required to achieve 90% to pass the assessment. The first five sections contain a series of questions based on case studies. The case study material is presented at the top of each question for your reference. The final two sections contain more general questions about Heartland products and standards. IMPORTANT NOTE Some questions may have more than one correct answer. Heartland Portal Accreditation Module July