New Zealand's Heartland Group sees an opportunity in the Australian reverse mortgage market, following the withdrawal of a number of lenders from that segment in recent years.According to the company's interim financial report, its Australian reverse mortgage business is experiencing strong growth. Annualised growth of gross receivables in the December half was 24.9 per cent (excluding the foreign exchange impact).Australian gross finance receivables were NZ$733 million for the half - up NZ$85 million in the previous corresponding period.Heartland says it plans to "accelerate growth through raising product awareness under dedicated marketing initiatives, including a television campaign".Last October Commonwealth Bank announced that it would stop selling reverse mortgages at the end of the year. It is continuing to service existing borrowers. CBA said the decision to drop its Equity Unlock for Seniors was part of its "strategy to become a simpler, better bank".Comparison site Canstar lists Heartland, IMB Bank and P&N Bank as providers of reverse mortgages, while finder.com.au also lists Heritage Bank.Heartland got into the reverse mortgage business in 2014, when it acquired Sentinel New Zealand and Australian Seniors Finance from Seniors Money International. In an investor briefing last December, Heartland claimed to be the biggest reverse mortgage provider in New Zealand with an estimated 80 per cent market share. In Australia, it claims market leadership with a 20 per cent share.According to Australian Prudential Regulation Authority figures, at June 30 last year there were 23,000 reverse mortgage loans outstanding - down from 28,000 a year earlier. Those loans were worth A$2.5 billion down from $2.8 billion a year earlier.Canstar research manager Mitch Watson says the reverse mortgage market is coming under pressure, with the expansion of the government's Pension Loan Scheme providing low-cost competition. The market will come under further pressure if proposed regulatory changes go through.In August, the Australian Securities and Investments Commission released a review of the reverse mortgage market, calling for lenders to improve their approach to meeting responsible lending obligations and to do a better job of helping consumers understand the risks they take on when they use a reverse mortgage.ASIC's concern is that borrowers are not getting enough help from lenders or advisers in working out the long-term implications of taking out a reverse mortgage. It found there was poor consumer awareness of the risk of home equity erosion over time. It said this lack of awareness could lead borrowers to take out a large reverse mortgage that could reduce their capacity to afford important future expenses, such as aged care accommodation, medical treatment and day-to-day living expenses.Watson says that any regulatory changes resulting from ASIC's review would increase lenders' costs, making what is already a marginal product even less attractive.Heartland sees it differently. "The combination of favourable demographics, limited active originators and raising product awareness through increased marketing activity presents the opportunity for significant growth and to cement Heartland's position as the market leader in reverse mortgage origination in Australia," it said.To support its growth plans, the group is raising funds locally. Heartland