Awareness Workshop on Reverse Mortgage

HelpAge conducts Awareness program on Reverse Mortgage Loans (RML)

There was an awareness workshop conducted by HelpAge Hyderabad in Belson Taj on 30^th November 2011. Sri Ch Parameshawar Reddy, President of APSCCON; Dr Rao Chelikani Hon President of FAPSCO;  Sri S Dass Regional Head, HelpAge, Hyderabad; Sri Harwinder Bakshi, Director HelpAge Delhi; Sri Rajmohan Managing Director NHB were on the dais.

Sri Prabhu from NHB gave a PowerPoint presentation on basics of RML and RMLeA, overview, eligibility, purpose, differences between RML and RMLeA, likely (typical) sums that can be expected as monthly loan for different age groups etc were explained. Many doubts were clarified with this presentation alone. Limitations of RML and how they have been removed in RMLeA were made clear.

Sri Parameshwar Reddy mentioned that the initial charges by way of Service charge, processing fee registration charges etc amounted a big sum and ways to reduce this burden must be explored. Sri Rao Chelikani said the mindset of seniors must change: most people would rather suffer financially rather than ask their children to  redeem the house property by clearing any loan taken by them. He also spoke about the system prevalent in European countries where a notary brings the owner of the house (senior citizen) and the buyer together without an intermediary like a bank. The owner and buyer enter into an agreement – buyer gives a loan in monthly installments and agrees to take possession of the property after the demise of the owner. Such an agreement is registered by the notary who verifies all the documents and a permanent record is kept.  As the intermediary is absent, both buyer and seller benefit. Sri Harvinder Bakshi limited himself to talking about advocacy efforts of HelpAge especially in the areas like  NPOP, Financial schemes for elders, MWPSCA etc. There were many doubts and suggestions from the audience, fielded effectively by the chief guest Sri Rajmohan from NHB He clarified the role of NHB and said that they have no direct control over administrative matters of banks offering RML products. He agreed to a suggestion that as banks are by far apathetic and insensitive to elders' requirements, more Housing Finance Institutions may be encouraged to enter the arena.  He also received a list of suggestions sent by the president of AISCCON for probable positive action. It was comforting to learn that NHB conducts sensitization programs for banks also. As RMLeA monthly pay outs in fact annuity payments, Income Tax on it can not be avoided as of now. IF NHB succeeds in removing this major hurdle, everyone would opt for RMLeA only.

I liked the program for its uptodate content, clarifications offered and of course for the tasty high-tea.

Even in the Elders Mela conducted recently in Hyderabad, stalls offering RMLeA were misleading visitors saying that no income Tax will be levied on monthly pay outs! Under such circumstances, seminars like these are most useful and essential. Some important phone numbers are: Sri Lakshiminarayana 9885833236; Arunodayakunar 9849411141; NHB Helpline 1800 115 432 ; Harmony HelLine: 1800 100 1111; hYderabad RML Helpline: 94412 84866.

Sri C Satyanarayana, Counselor handling RLM HelpDesk in HelpAge Hyderabad proposed a vote of Thanks.

 ====

Dr P Vyasamoorthy, 30 Gruhalakshmi Colony Secunderabad 500015 Ph 040-27846631 / 9490804278.My blog: http://vyasa-kaaranam-ketkadey.blogspot.com/