MFAA or Mortgage & Finance Association of Australia was founded in the year 1980. This Association represents the finance brokers, mortgage brokers, lending institutions, be it non-banking institutions or banking institutions and mortgage managers.
The Mortgage & Finance Association of Australia aims at developing, encouraging as well as promoting the mortgage industry as well as the finance industry. The other names of the association are Mortgage Industry Association of Australia or MIAA and Mortgage Industry Association of Australasian as well as Mortgage Bankers Association.
The reverse mortgage lenders affiliated to the MFAA offer MFAA reverse mortgage. The Mortgage & Finance Association of Australia has the right to terminate membership if it is found that a member has been indulging in dishonest activities.
MFAA reverse mortgage loan program offered by the affiliated members of the association are meant for the senior citizens of the country who have retired, are 62 years or more and do not have a steady income source.
The loan amount from MFAA reverse mortgage may be used for a number of purposes. The reverse mortgage market in Australia was doing very well when it slackened a bit in 2007. The reverse mortgage loan is different from the traditional mortgage loans. Reverse mortgage loans in general are more expensive than the forward mortgage loans.
The loan amount may be repaid back after the demise of the borrower(s). There are various ways in which the loan amount of reverse mortgage may be availed. The amount may be either taken on a monthly basis, lump sum or line of credit. A combination of any of the two is also permitted.
The title ownership of the house may be maintained and the borrower is not required to vacate the house after availing the loan. In the event of the death of the borrowers, the heir is responsible for the repayment.