HGH - Heartland Group Holdings

[winner69]

You must be repetitively well "impressed" then with how the chinese "Govt" does it with their GDP.

And they can do the sums and publish the result within a week after period end.

Most other countries take 2 to 3 months eh

[jg8512]

competition for HGH's Aust reverse mortgage business ... from the Federal govt, FFS.
https://www.servicesaustralia.gov.au...n-loans-scheme

at least they don't pay yet as a lump sum (yet!?)

[jg8512]

competition for HGH's Aust reverse mortgage business ... from the Federal govt, FFS.
https://www.servicesaustralia.gov.au...n-loans-scheme

at least they don't pay yet as a lump sum (yet!?)

actually you can now get lump sum advances from the Aust Federal govt: https://www.dss.gov.au/sites/default..._2021_1000.pdf

[Snoopy]

actually you can now get lump sum advances from the Aust Federal govt: https://www.dss.gov.au/sites/default..._2021_1000.pdf

Your Australian budget reference says from 1st July 2022:

"From 1 July 2022, pending the passage of legislation, Pension Loans Scheme recipients will benefit from:

•a No Negative Equity Guarantee, which means recipients will never owe more than the value of the equity in the secured property, and
•access to capped advance payments."

"Recipients will be able to access up to two lump sum advances in any 12-month period, up to a total value of 50 per cent of the maximum annual rate of Age Pension. Based on current Age Pension rates, a single person would be able to receive lump sum payments of up to around $12,385 per year, while couples combined could receive up to around $18,670"

https://www.servicesaustralia.gov.au...ch-you-can-get

Looks like the Federal government interest rate for reverse mortgage borrowers is 4.5% compounding fortnightly.

This does look like serious competition for the 'Heartland Reverse Mortgage Business' in Australia!

SNOOPY

[winner69]

I.....

..makes me wonder why bother with such a modest forecast upgrade ?

.....

.

Good question

I think Jeff is really telling us that they will get to $86m (up from $79m last year ...without the covid delay.

In Jeff’s mind the covid overlay doesn’t really exist and is not ‘normal’

He’s basically saying that when he reports $93m (writing back the overlay) don’t use that number as real performance (like we didn’t really go from $72m to $93m)......esp in your valuation models ... and forecasts for F22 .....as our guidance would then show we not doing very well.

Like F22 guidance $94m looks good v $86m in F21 but terrible v $93m reported profit.

Jeff’s just educating you all to be real

[percy]

Good question

I think Jeff is really telling us that they will get to $86m (up from $79m last year ...without the covid delay.

In Jeff’s mind the covid overlay doesn’t really exist and is not ‘normal’

He’s basically saying that when he reports $93m (writing back the overlay) don’t use that number as real performance (like we didn’t really go from $72m to $93m)......esp in your valuation models ... and forecasts for F22 .....as our guidance would then show we not doing very well.

Like F22 guidance $94m looks good v $86m in F21 but terrible v $93m reported profit.

Jeff’s just educating you all to be real

And he does it so subtly..

[Bjauck]

...
This does look like serious competition for the 'Heartland Reverse Mortgage Business' in Australia!

SNOOPY

Crown competition will be difficult to beat. Government and Reserve Bank policies have meant many regular folk are asset rich, with valuable homes, but financial assets/cash poor. It makes sense that they increase pensions by way of a loan instead of an outright benefit. As it is based on how much real estate equity the elderly recipient has, This scheme is a hybrid means tested pension/estate duty. I imagine the NZ Government is closely following what is happening in Australia as many NZ pensioners are asset rich but cash poor too.

[Rawz]

Crown competition will be difficult to beat. Government and Reserve Bank policies have meant ordinary folk are asset rich, with valuable homes, but financial assets/cash poor. It makes sense that they increase pensions by way of a loan instead of an outright benefit. As it is based on how much real estate equity the elderly recipient has, This scheme is a hybrid means tested pension/estate duty. I imagine the NZ Government is closely following what is happening in Australia as many NZ pensioners are asset rich and cash poor too.

The reverse mortgage product has been highly successful for HGH and I must say I was shocked when I saw the AFR article pop up on facebook talking about how retirees can go directly to the source and skip the middleman (HGH).

If NZ govt follows suit I wonder how much impact it will have on HGH earnings.

Sheesh what is next.. may as well open the government or better yet RBNZ tap for first home buyers. Actually who needs banks?

[peat]

This does look like serious competition for the 'Heartland Reverse Mortgage Business' in Australia!

SNOOPY

i mean its okay if you write an app and Microsoft or Apple consume you, at least they pay if you got your IP tied down but ... the Govt just swooping in on your business, that sux. Hard to compete with an infinite balance sheet.
So I guess they will possibly have to consider modifications to add further value for the client, over and above the state version. Convenience and flexibility components will need to be worked even harder.

[Beagle]

Good question

I think Jeff is really telling us that they will get to $86m (up from $79m last year ...without the covid delay.

In Jeff’s mind the covid overlay doesn’t really exist and is not ‘normal’

He’s basically saying that when he reports $93m (writing back the overlay) don’t use that number as real performance (like we didn’t really go from $72m to $93m)......esp in your valuation models ... and forecasts for F22 .....as our guidance would then show we not doing very well.

Like F22 guidance $94m looks good v $86m in F21 but terrible v $93m reported profit.

Jeff’s just educating you all to be real

Great post and it won't surprise me in the slightest if the guidance for FY22 is exactly what you suggest, $94m