KEY POINTS:
A company controlled by collapsed finance company Property Finance was a big player in the fledgling reverse mortgage market.
A source said that Property Finance's Lifestyle Securities had lent about $40 million in reverse mortgages. That represented almost 30 per cent of the local market, which the source said was in dire need of Government regulation.
Brendan Gibson of Property Finance's receivers, Ferrier Hodgson, said some of Lifestyle's loans had come under his control but the bulk had been turned into securities by the Guardian Trust. Lifestyle's 0800 phone number was not responding, saying its message box was full.
* A reverse mortgage (known as lifetime mortgage in the United Kingdom) is a loan available to senior citizens. It is used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (ie, into aged care). SOURCE: WIKIPEDIA
