ASIC Regulatory Guide 209 Credit Licensing: Responsible Lending Conduct (Australia) rg209-b-additional-sacc-reverse-mortgage: For small amount credit contracts obtain and consider ninety days of account statements and check the presumptions; for reverse mortgages give the equity projections and make the additional inquiries

What does rg209-b-additional-sacc-reverse-mortgage require?

Before entering a small amount credit contract the licensee must obtain and consider account statements covering at least the immediately preceding ninety days for each account that receives the consumer's income (transaction listings may suffice if they show the required detail), must use them to check for the presumptions of unsuitability (the consumer is in default under another small amount credit contract, or has had two or more such contracts in the preceding ninety days), and must observe the protected earnings amount for consumers who receive most of their income from government benefits. For reverse mortgages the licensee must ask what the consumer requires and aims for, possible future needs included (aged care, the needs of other residents), must show the consumer the projections of their home equity over time using ASIC's approved calculator before the assessment and give a printed copy, and must obtain the consumer's acknowledgement; the loan-to-value presumptions (unsuitable above the statutory ratios for the consumer's age) apply at the assessment.