GLOBAL SUB-PRIME CRISIS

BANKILEAKS

Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook
 

facebook3           facebook2 

BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

Visitors

Articles View Hits
563783

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

BFCSA Blog

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form
Recent blog posts
The Introduction to this blogpost can be found here.1. GREED FOR SECURITISATION PROFITS SPAWNED RAMPANT PREDATORY LENDING
Predatory Lending practices in Australia have been well canvassed by Denise Brailey, Phillip Soos, and Paul Egan, including in lengthy submissions to Senate Enquiries and the current Royal Commission into Banking. Some characteristics of predatory loans are: NINJA  (No Income, No Job, No Assets) loans and ARIP (Asset Rich, Income Poor) loans were widely given as they provided loans with a higher default risk than normal to securitise. Interest only. Income stated on Loan Application Forms was fraudulently increased by banks without Borrowers’ knowledge so as to provide loans that were more likely to default. Lo-Doc and No-Doc loans were designed to fail within about 5 years. Securitisation is structured in such a way that more money is made out of defaults than with loans that are paid out before or by the due date....
Last modified on
Hits: 54 0 Comments
Rate this blog entry:
0
Continue reading
Paladin cut deal with family of PNG powerbroker Australian Financial Review Feb 17, 2019 11.00pm Angus Grigg, Jonathan Shapiro, Lisa Murray   EXCLUSIVE  The family of one of PNG's most powerful politicians is directly benefiting from Paladin's $423 million worth of security contracts on Manus Island, awarded by the federal government in a closed tender. Documents released under Freedom of Information show in January last year Paladin Solutions PNG entered into an agreement with Peren Investment, a company controlled by the brothers of PNG's parliamentary speaker, Job Pomat. Mr Pomat is the local member for Manus, a key ally of Prime Minister Peter O'Neill and deputy leader of the ruling People's National Congress. His family are among those who claim traditional ownership of the land where the refugees are being housed. The agreement, for local employment and the provision of other services, came just a month after landowners blockaded the refugee...
Last modified on
Hits: 85 0 Comments
Rate this blog entry:
Continue reading
'Deep-rooted problems': PwC, KPMG, EY, Deloitte face 'serious' audit market review Australian Financial ReviewFeb 17, 2019 11.00pm Edmund Tadros   The audit work of the big four consulting firms PwC, KPMG, EY and Deloitte faces renewed scrutiny after a parliamentary committee expressed "ongoing concern" about the "deep-rooted problems in the audit market" and flagged a "serious review". The joint committee on corporations and financial services wrote that it has been "concerned for some years about audit quality" and asked the Australian Securities and Investments Commission to develop a new way to measure audit quality that produced results that are comparable over time. The committee, in an oversight report published late Friday, also concluded there should be a "serious review" of the audit market that explored issues such as the "market dominance and conflicts of interest arising from the range of other activities also conducted" by the consulting arms of the big...
Last modified on
Hits: 74 0 Comments
Rate this blog entry:
Continue reading
Apartments casting a shadow over the Australian economy The Australian 7:16am February 18, 2019 Alan Kohler   According to the ABS there are 225,221 apartments under construction in Australia, or at least there were last September, which is the most recent data available. Going by the building approvals data it looks the average value of those dwellings is around $400,000, which sounds about right, so there is a bit less than $100 billion worth of apartments in total being built. More than half of them — 135,000 — are in Sydney and Melbourne. Most, if not all of them, were sold off the plan. Not many developers can afford to fund a block of apartments on spec, and financiers want deposits to have been paid before lending the money. Deposits are typically 10 per cent. Sydney dwelling prices, on average, have now fallen 11.1 per cent; some places more, some less....
Last modified on
Hits: 72 0 Comments
Rate this blog entry:
0
Continue reading
Interest-only loans worth $230 billion 'trap' 650,000, warns Morgan Stanley Australian Financial Review Feb 15, 2019 6.00pm Duncan Hughes   About 650,000 borrowers with loans totalling around $230 billion are 'trapped' in their interest-only loans and could struggle to refinance, forcing many to sell into already deteriorating property markets, according to investment bank Morgan Stanley. Borrowers will need to extend the interest-only period, switch to a principal and interest loan or find a buyer for their property as their low rate terms expire, warns the analysis, which was done in conjunction with AlphaWise, a customised researcher for hedge funds and finance companies. "Almost half of interest-only borrowers are 'trapped'," the analysis warns. "These households appear high risk on a variety of metrics, and we expect added selling pressure on the housing market when their interest-only periods expire in the next two years." The warning came as ratings agency Standard & Poors...
Last modified on
Hits: 48 0 Comments
Rate this blog entry:
0
Continue reading
S&P says housing biggest risk for banks as Fitch downgrades NAB Australian Financial Review Feb 15, 2019 4.45pm James Eyers   The main risk facing banks is the housing downturn and not the banking royal commission, which will make lenders cautious but have no lasting impact on reputations or funding costs, credit experts say. "We see a scenario where the rapid unwind [of housing] is the most plausible scenario for what can go wrong for banks in Australia," S&P's director of financial institutions ratings, Sharad Jain, said. "We think house prices will continue to slide down, which is partly about momentum, and partly a realisation as it gets played out in media repeatedly that house prices are overvalued and in a correction phase. "But at the same time, we think that the risk of a harsh correction ... remains relatively low even though it is elevated by historical standards." S&P Global...
Last modified on
Hits: 59 0 Comments
Rate this blog entry:
0
Continue reading
ASIC eyes 'extremely harsh' sanctions against banks Australian Financial Review Feb 15, 2019 2.25pm John Kehoe   The corporate regulator's chief prosecutor, Daniel Crennan, QC, has warned that the government has empowered him to pursue "extremely harsh civil penalties and criminal sanctions against banks, their executives and others" after the Senate passed tough new sanctions for white-collar offences. Corporate executives would face maximum jail terms of 15 years for criminal offences and companies be liable for fines of up to $525 million per civil violation, after the Morrison government agreed to Labor's amendments to toughen the Coalition's bill on Thursday night. Mr Crennan, an ASIC deputy chairman, said the passage of the penalties bill through the Senate was a very significant step for the Australian Securities and Investments Commission's enforcement capabilities when corporate laws had been breached. Daniel Crennan, QC, deputy chairman at the Australian Securities and Investments Commission: "Without this...
Last modified on
Hits: 58 0 Comments
Rate this blog entry:
0
Continue reading
Class action over cladding The Australian 12:00am February 16, 2019 Ben Butler, Ben Wilmot   A landmark class action against the importer and manufacturer of potentially deadly building cladding could result in hundreds of millions of dollars in compensation for apartment tower owners, its backers say. The lawsuit, filed in the Federal Court by Sydney firm William Roberts Lawyers and bankrolled by listed litigation giant IMF Bentham, targets the Sydney-based importer of Alucobond, Halifax Vogel Group, and its German manufacturer, 3A Composites. But more importers and manufacturers of other similar products could also be targeted by similar lawsuits, William Roberts principal Bill Petrovski told The Weekend Australian. “We anticipate that we will be able to launch action and get compensation for other products and other manufacturers,” he said. The move came as new figures revealed the extent of the problem was growing as state authorities undertake more invest­igations into problem towers....
Last modified on
Hits: 213 0 Comments
Rate this blog entry:
0
Continue reading
In September 2018 I sent a 20 page Report to the Royal Commission into Banking. It’s not that I expected anyone would take action on the issues I covered - the Terms of Reference were limited, and it was clear they weren’t going to go near the issues I raised.  However, I wanted to summarise my findings of the last 14 years, and setting myself the goal of doing this in time to submit to the RC was the motivation I needed to finish the task.Now that it’s finished, I can leave it to sit with the other 10,000+ RC submissions that none of us have access to - or I can make my Report available for those who don’t yet understand the issues I discuss.  So with Christmas over, travels behind me, and the major project of my son’s 80 page 21st Birthday Photo Album just completed I thought I...
Last modified on
Hits: 84 0 Comments
Rate this blog entry:
0
Continue reading
ASIC wants banks to apply new lending buffers Australian Financial Review Feb 14, 2019 4.01pm James Eyers   The corporate regulator has indicated in new prescriptive lending guidance that the controversial household expenditure measure is too low and not an appropriate estimate of loan applicants' living expenses. A highly anticipated update to Regulatory Guide 209 was put on hold pending the final report of the banking royal commission, which did not, as feared, prevent banks using the HEM. However, the commissioner suggested its use was not a sufficient quality check on borrowers' financial position — and it appears the Australian Securities and Investment Commission now agrees. While retaining a flexible and risk-based approach, ASIC said it wanted to insert a clause in its regulatory guide stating: "Benchmarks can be useful as a tool to test the plausibility of consumer-provided information, but do not give a positive confirmation." Lawyers welcomed the update,...
Last modified on
Hits: 84 0 Comments
Rate this blog entry:
0
Continue reading
It’s unanimous: Economists’ poll says we can fix the banks. But that doesn’t mean we will The ConversationFebruary 14, 2019 6.17am AEDT Gigi Foster, Professor, School of Economics, UNSW Paul Frijters, Co-Director, Wellbeing Program, London School of Economics and Political Science   After three years and 35 polls, the Economic Society of Australia has received its first-ever unanimous response to a survey question. It asked just over 50 of Australia’s leading economists to respond to this statement: There is no way to significantly increase the degree to which Australian retail banks act in the interests of consumers. Twenty did. All rejected the proposition that nothing could be done. But there was widespread disagreement about what should be done. Most thought that regulations should be tightened and better enforced. Mathew Butlin’s comments typify this “more regulation” approach: The incentive structures for bank staff, from the top down, play a key role in...
Last modified on
Hits: 76 0 Comments
Rate this blog entry:
0
Continue reading
Banks to face a new inquiry in three years Australian Financial Review Feb 13, 2019 10.30pm John Kehoe, Phillip Coorey   The federal government has told the banks and regulators there will be a fresh industry inquiry in three years to ensure they have improved their behaviour and are treating customers better. Treasurer Josh Frydenberg wrote this week to the heads of the Australian Banking Association, Australian Securities and Investments Commission and Australian Prudential Regulation Authority directing them to swiftly implement dozens of Commissioner Kenneth Hayne's recommendations that pertain to their bodies. "The government is committed to seeing lasting change within the financial sector," Mr Frydenberg wrote. As he did the day the royal commission findings were released, Mr Frydenberg also urged ASIC to move swiftly with recommended civil and criminal prosecutions for up to 24 companies or individuals. He told ASIC to follow Commissioner Hayne's recommendation to shift to a...
Last modified on
Hits: 105 0 Comments
Rate this blog entry:
0
Continue reading
AMP faces $1.5bn bill to buy out planners The Australian 12:00am February 14, 2019 Michael Roddan   EXCLUSIVE  Royal commission recommendations to clamp down on recurring financial advice fees are likely to accelerate the exit of AMP-aligned advisers from the industry, forcing the wealth manager to become the buyer of last resort for their businesses. The prospect that royal commissioner Kenneth Hayne would propose a ban on grandfathered trailing commissions had already stoked concerns that a number of AMP licensees and authorised advisers would sell up under their so-called buyer-of-last-resort agreement, potentially ramping up the wealth manager’s liability. The agreements oblige AMP to purchase a licensee’s business at four times recurring revenue. While grandfathered commissions are believed to make up less than 20 per cent of adviser revenue, Mr Hayne’s proposals to limit the ability of companies to deduct fees on super products will further reduce the value of many advice...
Last modified on
Hits: 87 0 Comments
Rate this blog entry:
0
Continue reading
CBA can't stop charging fees, scrambles for fix Australian Financial Review Feb 13, 2019 11.00pm James Frost   Commonwealth Bank has admitted it is unable to stop charging fees to investors as ordered by the Australian Securities and Investments Commission as the bank works feverishly behind the scenes to meet the demands of the regulator. Ten days ago, on the day the final report of the Hayne royal commission was released, ASIC ordered CBA to stop charging financial advice customers ongoing service fees and prohibited it from entering into new ongoing service arrangements. However the bank has been unable to switch the fees off. A spokesman for the bank said any fees deducted by the bank in breach of the order would be warehoused and customers would be refunded fees back to February 1. The bank says it needs third parties including super funds and platform providers to stop charging its...
Last modified on
Hits: 92 0 Comments
Rate this blog entry:
0
Continue reading
APRA's Wayne Byres tells banks to take carriage of Hayne recommendations Australian Financial Review Feb 13, 2019 2.15pm James Eyers   Australian Prudential Regulation Authority chairman Wayne Byres said banks and their boards of directors have ultimate responsibility for cementing the Hayne royal commission recommendations and can't rely on regulators to stipulate the way forward on culture. While prudential regulation will ramp up focus on risk culture in coming years, Mr Byres said a clear lesson from the royal commission was that primary responsibility for misconduct rested with boards and senior management of banks and "the quality of management, and the risk culture that pervades an institution, can't be prescribed". "Good policies and frameworks may be established, but without the right culture, they are no guarantee of good practice," he told a meeting of global prudential supervisors in Sydney on Wednesday morning. "And practice is what counts." The comments come as...
Last modified on
Hits: 71 0 Comments
Rate this blog entry:
0
Continue reading
Move quickly and firmly on Hayne proposals, British inquiry veterans warn Australian Financial Review Feb 13, 2019 10.09am Hans van Leeuwen   Banking executives and regulators have to have their feet held to the fire if an inquiry like the Hayne royal commission is going to deliver meaningful and long-term change, according to veterans of Britain's own decade of banking commissions and reforms. As Australia grapples with the political and policy fallout of the Hayne commission, British politicians and experts who were involved in high-profile banking misconduct inquiries over the past decade warn that reform momentum can quickly fade – unless enforcement officials are prodded to use their teeth, and banking chiefs are held sharply to account for misconduct on their watch. The experience of MPs who presided over the Parliamentary Commission on Banking Standards – a year-long investigation set up in mid-2012 to tackle banking misconduct – suggests the Australian...
Last modified on
Hits: 90 0 Comments
Rate this blog entry:
0
Continue reading
Banking royal commission: Basel's Bill Coen says pay supervisors like bankers Australian Financial Review Feb 13, 2019 12:00am James Eyers   The Australian Prudential Regulation Authority will find it tough going to meet the Hayne royal commission recommendations, says the world's most senior banking regulator, given most global banking watchdogs are struggling to define and measure culture and non-financial risks. Bill Coen, secretary-general of the international Basel Committee on Banking Supervision, also says insufficient regulatory resources could hinder efforts to implement the recommendations. The focus of global prudential supervisors has shifted from mostly quantitative work to making judgments about the behaviour and personalities of bankers – requiring supervisors with more skills and experience. As a result, pay levels for bank supervisors will need to rise substantially, says Coen, who is visiting Sydney this week. APRA has warned it would take several years to lift supervision of bank culture to the level...
Last modified on
Hits: 74 0 Comments
Rate this blog entry:
0
Continue reading
Shadow banks swoop as five lenders quit sub-prime home loans Australian Financial Review Feb 13, 2019 12.45pm Duncan Hughes   Digital home-loan lender Tic:Toc is launching into the sub-prime mortgage market targeting small business owners as five other lenders quit the sector claiming "industry changes". Tic:Toc's move follows stakes being taken in the online lender by Genworth Mortgage Insurance Australia and La Trobe Financial, which is part of the US investment giant Blackstone Group. Other major lenders, including Commonwealth Bank of Australia and Bank of Queensland, pulled out of the sector to be replaced by regulation-lite shadow banks, including Pepper Money and Resimac. Adelaide Bank, Perth-based Bluebay Home Loans and Resolve Finance's mortgage division are also quitting the sub-prime sector blaming changing marketing and funding conditions. The move comes amid growing controversy about a credit squeeze for small business operators, debate about the future of mortgage brokers as a distribution channel...
Last modified on
Hits: 127 0 Comments
Rate this blog entry:
0
Continue reading
The ACCC's cartel probe into Deloitte, EY, KPMG, PwC 'difficult to prove' Australian Financial Review Feb 12, 2019 11.00pm (Updated Feb 13, 5.08pm) Edmund Tadros, Tom McIlroy   EXCLUSIVE  The competition regulator will be looking for evidence Deloitte, EY, KPMG and PwC have co-ordinated their price, charging method or even their decisions around bidding on government work as part of its probe into the activities of the big four consulting firms, experts say. But they warn that cartel and anti-competitive behaviour is difficult to prove with some sceptical the Australian Competition and Consumer Commission will find any evidence of wrongdoing by the firms. The Australian Financial Reviewrevealed on Wednesday the ACCC has asked the four firms for information including engagement letters, draft proposals and other notes related to their public sector work as part of preliminary inquiries to see if a formal investigation into their actions is warranted. The firms have...
Last modified on
Hits: 102 0 Comments
Rate this blog entry:
0
Continue reading
AWU raids: Michaelia Cash ex-aide told Justice Minister’s staffer, both tipped off media The Australian 12:50pm February 13, 2019 Ewin Hannan   Michaelia Cash’s former media adviser David De Garis has revealed he gave advance notice of raids on the Australian Workers’ Union to a staffer with Justice Minister Michael Keenan and they both tipped off media ahead of the raids. Mr De Garis told the Federal Court today he contacted a media adviser in Mr Keenan’s office, Michael Tetlow, after he was told about the imminent raids by Senator Cash’s chief of staff, Ben Davies. After they discussed how to disseminate the information to the media, Mr De Garis said he contacted newspaper reporters and Mr Tetlow contacted television journalists to tell them about the raids later that day. Mr De Garis said he telephoned journalists from The Australian, The Daily Telegraph and Fairfax. Under questioning from AWU lawyer Herman...
Last modified on
Hits: 71 0 Comments
Rate this blog entry:
0
Continue reading
Scott Morrison tries to head off Bob Katter revolt over banking royal commission Australian Financial Review Feb 11, 2019 9.00pm Phillip Coorey   Prime Minister Scott Morrison has not ruled out axing a $234 million deal with Bob Katter if the independent sided with Labor and forced a recall of Parliament to start dealing with the recommendations of the banking royal commission. With Labor needing an absolute majority of 76 votes to schedule two extra sitting weeks in March, Mr Morrison's office has been in touch with Mr Katter to try to talk him out of supporting the motion, which would be binding on the government if passed. It is understood Mr Katter has told the government what he is saying publicly – that he is open to supporting the motion that could be put to Parliament this week. On Monday, his support for the motion appeared to strengthen with a...
Last modified on
Hits: 98 0 Comments
Rate this blog entry:
0
Continue reading
APRA holds back on Hayne rebuild The Australian 12:00am February 12, 2019 Ben Butler, Joyce Moullakis   The prudential regulator has refused to say when it will implement a key recommendation of the Hayne royal commission requiring it to overhaul its supervision of banks and super funds to focus on misconduct and poor culture. In its response to royal commissioner Kenneth Hayne’s final report, released last week, the Australian Prudential Regulation Authority said it would implement nine of the 10 recommendations affecting it by 2020. However, it gave no time frame to bring in Mr Hayne’s recommendation that it change its prudential supervision to focus on misconduct, including “improving entity governance” and building cultures within institutions “that will mitigate the risk of misconduct”. It also said it might need an increase to its budget, which is currently about $140 million a year. “Developing the capacity to supervise these issues, across a...
Last modified on
Hits: 78 0 Comments
Rate this blog entry:
0
Continue reading
Lawyers warn against rushing new bank laws The Australian 12:00am February 11, 2019 Simon Benson   EXCLUSIVE  The Law Council of Australia has warned against Labor’s call to ­extend parliament in response to the banking royal commission, claiming rushed legislation would fail to deliver justice for thousands of victims who can’t afford to ­legally pursue banks that have ripped them off. Instead it has called for legal aid to be extended immediately to consumers who had meritorious claims against the banks but were unable to launch often costly legal action in a system that it claimed was in “crisis”. The Law Council’s official response to the royal commission warned against extending parliament to legislate recommended reforms, claiming rushed laws could have unintended consequences. It also called for a further $310 million for federal legal ­assistance funding with many consumers unable to access legal representation. Law Council president Arthur Moses SC told...
Last modified on
Hits: 76 0 Comments
Rate this blog entry:
0
Continue reading
Big four back on investors’ radar The Australian 12:00am February 11, 2019 Scott Murdoch  The major Australian banks are back on the radar of international equity investors, with the royal commission’s final report removing sovereign risk concerns about the sector that emerged over the past year.  A roundtable of top bankers and advisers to the financial services sector, hosted by The Australian, found that the local banks had lost their share price premium compared to their international peers as the Hayne hearings played out over 2018. The upbeat financial market reaction to the big banks since the final report was delivered last week has been attributed to foreign investors buying the stocks again. The ASX banking index rose by 6 per cent last week, adding $22 billion to the market capitalisation of the local banks. Minter Ellison’s financial services practice leader Rahoul Chowdry said the reputation of the Australian banking industry...
Last modified on
Hits: 205 0 Comments
Rate this blog entry:
0
Continue reading
ASIC took 3 years to charge rogue Deutsche Bank trader Australian Financial Review Feb 10, 2019 6.46pm Misa Han   A Deutsche Bank derivatives trader who made up figures to mask his trading losses has asked a court to spare him jail time because the corporate regulator took three-and-a-half years to charge him. Andy Donaldson, 51, appeared in the NSW District Court last week for his sentencing hearing. The former Sydney-based derivatives trader pleaded guilty to one charge of using his position dishonestly to gain an advantage for himself after admitting he entered fictitious transactions and fixed cashflows into the global investment bank's internal system to inflate his profit-and-loss figure. Donaldson faces up to five years in jail. Donaldson's barrister, Simon Buchen, SC, pleaded for no jail time for Donaldson and asked Judge Garry Neilson to impose a fully suspended sentence instead, arguing his client has already suffered because of the...
Last modified on
Hits: 71 0 Comments
Rate this blog entry:
0
Continue reading