Over Fifty Group last week announced it’s exit from the Australian reverse mortgage industry, effective immediately.
Although the credit crunch and the subsequent rising cost of funds was partly to blame, their exit is probably mostly a function of mixed sentiment between previous management and shareholders over the long-term direction of the company. They have cited the capital intensive nature of reverse mortgages as a major deterrent for further operation, and will now focus on funds management and investment. They have no plans to re-enter the market in future.
Over Fifty Group had a good product offering, and their exit is regrettable for consumers and the industry alike. Given the (hopefully temporary) previous withdrawal of Bluestone and ASF, product choice has diminished significantly over the last 3 months. Now, perhaps more than ever, having a qualified reverse mortgage broker to guide you through the remaining lenders is crucial.