Senior Australians Equity Release Association of Lenders (SEQUAL) has admitted equity release provider Homesafe Solutions, in which Bendigo and Adelaide Bank holds a 50 per cent stake, as a member.
It is the first time the association has admitted a non-lender and it had to change its statutes to make the inclusion possible.
"SEQUAL has now extended its membership to include a non-reverse mortgage, equity release product provider," SEQUAL chief executive Kevin Conlon told InvestorDaily.
"It is important that senior Australians have choices in determining the most appropriate way to release equity from their homes."
Under Homesafe's equity release products, a homeowner can sell part of their residence to the company.
In contrast to a reverse mortgage the product is not a loan and no interest is paid to Homesafe, although other fees do apply. Instead, the company takes a stake in the residence, which is realised upon the sale of the property.
"I have been very keen for there to be an industry body for equity release ... because I believe in dealing with government and regulators, what was necessary was a non-product specific industry body," Homesafe Solutions managing director and founder of the business Peter Szabo said.
Although SEQUAL had to amend its statutes to accommodate for the inclusion of Homesafe, the association will not change its name to reflect its broader focus.
"Our name resonates well with our members and with consumers," Conlon said.
The financial crisis and the subsequent collapse of the securitisation market has seen a number of reverse mortgage providers exit the market.
This has also impacted SEQUAL's membership base, which has decreased from 18 in 2006 to nine in 2009.
