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.

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APRA asked to investigate valuations   December 16, 2014 http://www.theadviser.com.au/breaking-news/31241-apra-asked-to-investigate-valuations   The FBAA has said it will ask APRA to investigate how mortgage valuations are calculated.  According to the association, buyers are being disadvantaged by valuations that are too low.    The development comes after The Adviser reported serious concerns about valuations and conducted a poll in which 52.7 per cent of brokers said valuations are usually too low.   FBAA chief executive Peter White said it was not good enough that brokers report huge variations in valuations for the same property, sometimes by hundreds of thousands of dollars.   "Valuations should reflect the true value of a property and incorrect valuations can in some cases prevent buyers from being able to purchase the home they want," he said.   Mr White said lenders are increasingly using valuations based on computer-generated market averages, but these do not take into consideration the nature of the individual property....
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I have an awful gut feeling...   How Force-Placed Insurance Leads to Foreclosure May 14 2013 http://finance.yahoo.com/news/force-placed-insurance-leads-foreclosure-171400365.html       NEW YORK (MainStreet)—I constantly hear banking and insurance industry professionals stating that only 1% of loans in their loan portfolios have force-placed insurance as a way of defending the practice. According to the Census Bureau, this equates to 7.56 million American citizens being price gouged. That the banking and insurance industries consider this staggering number to be inconsequential isn't even the disgusting part. Also see: DFS Force-Placed Insurance Legislation is a Joke The statistics they provide to back this up are a fallacious argument. Banks only report 1% of their loan servicing portfolios as having force-placed insurance, because the product is four to ten times more expensive than a regular homeowner's policy (as reported by Birny Birnbaum during the NY Department of Financial Services hearings on the product, the transcript of which can...
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Regulators struck secret deal to dilute damages paid by big banks  Posted on July 26, 2015 http://sbcb.org.uk/2015/07/26/regulators-struck-secret-deal-to-dilute-damages-paid-by-big-banks/   Regulators reached a secret deal with the biggest banks to water down a multibillion-pound scheme to compensate customers mis-sold complex interest rate derivatives blamed for bankrupting hundreds of businesses.  Documents seen by The Times show significant differences between the final rules for compensation schemes for victims of interest rate swap mis-selling and those put forward less than two weeks before. In the first draft of the rules, the Financial Services Authority — the predecessor of the Financial Conduct Authority, the City regulator — proposed handing a key role to an independent reviewer to oversee the redress process. Days later officials apparently had changed their minds, relegating the role of the “skilled person” to effectively rubber-stamping compensation offers. Letters sent on January 17, 2013, and on January 29, 2013, to Chris Sullivan, a senior executive at Royal Bank...
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China to Individual Investors: Go Ahead, Bet the House on Stocks Jul 02, 2015   http://washpost.bloomberg.com/Story?docId=1376-NQUP7K6JIJUR01-4GCA8NCOIGPB493BV8MGSJM8M7   (Bloomberg) -- In China, you can now literally bet the house on the nation’s tumultuous stock market.  Under new rules announced Wednesday by the country’s securities regulator, real estate has become an acceptable form of collateral for Chinese margin traders, who borrow money from securities firms to amplify their wagers on equities. That means if share prices fall enough, individual investors who pledge their homes could be at risk of losing them to a broker.   While the rule change was intended to help revive confidence in China’s $7.7 trillion stock market after a 24 percent slump in less than three weeks, analysts say securities firms may be reluctant to follow through. Accepting real estate as collateral would tether brokerages to another troubled sector of the economy, adding to risk-management challenges as they try...
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  • organza
    organza says #
    Wonder if "other assets" include their Aussie Investment properties as acceptable collateral?
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DoJ ratchets up pressure on UBS over Libor scandal Gina Chon in Washington May 13 2015 http://www.ft.com/intl/cms/s/0/c0068f96-f906-11e4-8e16-00144feab7de.html#axzz3a0m0MZAe  The US justice department is considering scrapping a 2012 agreement to not prosecute UBS for allegedly manipulating Libor in the latest sign that US authorities are ratcheting up pressure on global banks.   UBS had agreed in 2012 to a non-prosecution agreement (NPA) to resolve allegations it rigged the benchmark rate, saving it from a guilty plea if the Swiss bank avoided other alleged wrongdoing for two years.   The deal was recently extended for an additional year to the end of 2015. But now that settlement is under threat as part of the wide-ranging probe of potential manipulation of foreign exchange markets, which the DoJ is hoping to resolve with UBS and four other banks as soon as next week.   The threat of scrapping the 2012 NPA for the Libor settlement is...
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http://ellenbrown.com/2014/12/01/new-rules-cyprus-style-bail-ins-to-hit-deposits-and-pensions/ New G20 Rules: Cyprus-style Bail-ins to Take Deposits AND Pensions Posted on December 1, 2014 by Ellen Brown http://ellenbrown.com/2014/12/01/new-rules-cyprus-style-bail-ins-to-hit-deposits-and-pensions/ On the weekend of November 16th, the G20 leaders whisked into Brisbane, posed for their photo ops, approved some proposals, made a show of roundly disapproving of Russian President Vladimir Putin, and whisked out again. It was all so fast, they may not have known what they were endorsing when they rubber-stamped the Financial Stability Board’s “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution,” which completely changes the rules of banking. Russell Napier, writing in ZeroHedge, called it “the day money died.” In any case, it may have been the day deposits died as money. Unlike coins and paper bills, which cannot be written down or given a “haircut,” says Napier, deposits are now “just part of commercial banks’ capital structure.” That means they can be “bailed in”...
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What a thoroughly dishonest man is Meddlesome Medcraft, Chairman of ASIC and IOSCO.  This is just plain balderdash!  Mortgage Originators are under orders from Four Major Banks and the regulator is captured by the same TOO BIG TO FAIL FOURSOME.  Ask any victim of mortgage fraud.  The fraud and forgery is carried out INSIDE THE BANKS via the processing channel using a wicked serviceability calculator that is used for fudging figures and with a note: NO COPY TO BE GIVEN TO CUSTOMER............Go Figure! Securitisation to fund real economy, says Medcraft Wednesday, 12 November 2014   IOSCO chairman Greg Medcraft has called on Australian banks and RMBS issuers to recognise the “integral role” that securitisation can play in financing the real economy. Speaking at the Australian Securitisation 2014 annual conference in Sydney yesterday, Mr Medcraft said securitisation has funded the economy in the past, very successfully in Australia, and has the potential...
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    Susan says #
    MORE securitisation? How can Securitisation fund the 'real economy' when the money that is supposedly generated through the secu
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Victims seek olive branch from ANZ over Timbercorp collapse DateNovember 8, 2014 - 12:15AM 84 reading now Read later Adele Ferguson and Ruth Williams     inShare submit to reddit Email article Print Reprints & permissions   Cracks in the Timbercorp juggernaut started to appear even before the Australian Tax Office cracked down on agribusiness schemes. Photo: Andrew Quilty  "Hmmn! At least this hasn't shaken my view as to the extent to which banks can f*ck you over and why bank debt should always be the least preferred option." So wrote Timbercorp boss Sol Rabinowicz, in an email to his chief financial officer John Murray in October 2008. The global financial crisis was in full swing. In Australia, Storm Financial was on the brink of collapse and a group of whistleblowers at Commonwealth Bank's financial planning division were preparing to blow the lid to the Australian Securities and Investments Commission (ASIC) on a widespread...
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  • Denise
    Denise says #
    This constant denial from staff PROVES only CEO and top exec's were the engineers of the fraud. It is so clever the staffers in a
  • Geoff
    Geoff says #
    Had a call from my ANZ Branch wanting to see if my accounts were the best for me. When I told the lady about all the LAF fraud on
  • Wayne
    Wayne says #
    I asked ANZ local manager the other day is there any way I could get finance without showing my figures or filling out an applicat
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The big danger is if RBA raise interest rates the entire Interest Only Loan Mortgage Market will collapse as the horror stories emerge.  People coerced into paying DEBT with more debt as "buffer loans."  Property market slips and those debts will reveal 120% LVR loans........................huge number of unaffordable junk mortgages, approved by major banks. Warning to bank shareholders is in this statement: "The big banks are also propelled by a favourable industry structure, where the high levels of concentration deliver pricing power, and are big beneficiaries from the profitability of mortgages, which dominate their asset books."   No mention of Sub Prime lending where most of the profits are coming from.  This email address is being protected from spambots. You need JavaScript enabled to view it.   Big banks to report $29b in profit   Some fund managers saw the heavy sell-down of bank stocks as a chance to grab some bargains, suggesting that the negative sentiment around the financial system inquiry may be overblown . James Eyers  AFR...
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Loan serviceability buffers questioned Friday, 12 September 2014 James Mitchell http://www.mortgagebusiness.com.au/breaking-news/7640-westpac-s-loan-serviceability-buffer-questioned   A new report has raised concerns that the loan serviceability buffers of Australian banks are too low for borrowers to withstand rate rises.  Interest rate buffers are used to assess a borrower’s ability to meet mortgage repayments in the event of a rate rise. The JP Morgan Australian Mortgage Industry report singled out Westpac as an example of a lender with a buffer rate of 6.8 per cent, just under two per cent above the current rate of repayment on a standard mortgage.  “That serviceability buffer is actually around the 10-year average mortgage rate,” JP Morgan banking analyst Scott Manning said. “If you are assessing buffer ability on averages, rather than stressed scenarios, we question whether that is sufficient and we think maybe the three per cent buffer that the UK is proposing actually makes a bit of sense,”...
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Ignore the banks, the housing bubble is real The Drum By Ian Verrender Posted Mon at 7:55amMon 29 Sep 2014, 7:55am http://www.abc.net.au/news/2014-09-29/verrender-its-official-there-is-no-real-estate-bubble/5775112 A raft of executives and chief economists from almost every major bank have screamed their message that there's no housing bubble, so that has to be true, right? Well, not quite, writes Ian Verrender. It's official! There is no real estate bubble.  The stratospheric trajectory of residential property prices in Sydney and Melbourne during the past two years is nothing more than market forces at work and, if anything, is evidence of the efficient operation of the Australian housing market.  How do we know this? Because a raft of senior executives and the chief economists from almost every major bank have told us so, screaming their message, occasionally in unison, from the rooftops in recent weeks. Forget the concerns of the Reserve Bank, the Bank for International Settlements and...
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http://www.theguardian.com/business/2011/dec/14/banks-accounting-loopholes-profits-bonuses Banks use accounting loopholes to inflate profits and bolster bonuses - Gordon Kerr former banker and author of the report calls for radical reform to stop banks investing in risky assets Jill Treanor  The Guardian, Wednesday 14 December 2011 Banks use accounting loopholes to inflate their profits and bolster staff bonuses, according to a report published on Wednesday that calls for changes to the international accounting rules.  According to the paper by the Adam Smith Institute, banks are able to use complex financial products such as credit default swaps to report profits that they might not otherwise be able to. Gordon Kerr, a former banker who wrote the report, said the blame lies with the International Financial Reporting Standards (IFRS) rules that allows banks to recognise their expectations of future income as current profits.  "The accounting regulation system needs radical reform so that banks are not encouraged to invest in...
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"spending $49 million improving compliance and adding 11,500 hours of adviser training to comply with ASIC and implement FOFA reforms.  Concerns were raised about the fact that Macquarie clients must contact the bank about remediation, because it is in charge of the process with ASIC's oversight.  Key class action law firm Maurice Blackburn's financial disputes head John Berrill said the process was flawed with no detail given about whether clients would be given all of the information on their files." Charles Ponzi must be laughing from the grave.  He was a serial control fraud - a robber of banks.  He had a sense of humour.  His first "group victims of PONZI schemes" were three quarters of the BOSTON POLICE FORCE.  In 1927 he borrowed all their superannuation and savings and forgot to pay it back.  But he did buy a bank and robbed it blind.  He ran fraud and forgery scams involving...
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http://news.smh.com.au/breaking-news-business/asic-slams-financial-planners-20140815-3dr6n.html ASIC slams financial planners BusinessNationalBreaking News Business Date August 15, 2014 Greg Roberts The corporate regulator has slammed Australia's financial planning industry for shonky standards as a scandal involving Macquarie Group widened.  Macquarie, the so-called "millionaires factory" investment bank, was ordered by the Australian Securities and Investments Commission (ASIC) on Friday to invite 160,000 past and present clients to seek compensation. The scandal involves misconduct and flawed financial advice given by its planners to clients causing heavy losses dating back to 2004 - when the bank first obtained a financial services licence.  One claim involves a document called the "Penske File" - taken from TV hit Seinfeld - and containing answers to compulsory professional development exams so Macquarie advisers could cheat. The industry is facing a crisis of confidence after Australia's largest bank CBA had its own recent scandal, with more than 1,100 customers losing savings due to rogue advisers. ...
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Posted by on in Bankers A Law Unto Themselves
Article from the Kyabram Free Press News. Wednesday 13th August 2014. "At Swan Hill a farming family has taken the National Australia Bank, Freshmax Farms, Seller Muldoon and Benton, and the Financial Services Ombudsman to the Federal Court. Gay and Tony Tripodi launched the action after a forced sale of their property Murrawee Farms, alleging the farm was sold to Freshmax Farms ahead of a ruling by the Ombudsman regarding the receivership. They also allege an offer to buy the farm, which they believe was higher than Freshmax Farm' offer, was rejected by the receivers."    ...
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  • setup
    setup says #
    It proves again that NAB's intention in approving the loan in the first place, was to eventually onsell the farm to one of their c
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http://www.2gb.com/article/low-doc-loans#.U-qpGLYC_Rk.email    COMING UP Tomorrow:   THURSDAY MORNING  Thursday 14th Aug AT  7.10AM  2GB   ALAN JONES PROGRAM I will be with Alan in interview for roughly 15 mins re Banking   THURSDAY NIGHT: We have brave and courageous members who will tell their story to Martin King on  A CURRENT AFFAIR on BAD BANKS.  A personal thankyou from me.   Saturday Morning Radio 2 UE  Sydney and regional and Qld  “George and Paul” 16th August at 7.15am (Sydney time)   Monday 18th  LIVE News Nine in studio 6.30am - interview TUESDAY AUSTRALIAN PAGE 3 ANDREW BURRELL Also on Tuesday 12th: 2GB interview NSW Ross Greenwood (evening) ABC RADIO WA  8.30  am   Jeff 5AA Adelaide SA   Will Goodings (noon) 2UE NSW speaking with Stewart mid morning   ABC QLD speaking with Terri (early morning)    Most of this MEDIA ONSLAUGHT has taken 5 weeks to put together and more revelations on the...
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  • Aries
    Aries says #
    Here is the link Denise and Ross Greenwood http://www.2gb.com/article/low-doc-loans#.U-qpGLYC_Rk.email
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Frightening Loan to Income ratio's on mortgages in the United Kingdom.   http://blogs.telegraph.co.uk/finance/jeremywarner/100027450/another-boom-and-bust-in-the-housing-market-is-inevitable-without-more-radical-reform/ Another boom and bust in the housing market is inevitable without more radical reform By Jeremy WarnerEconomics Last updated: June 13th, 2014 Perhaps the biggest UK economic policy failure – or rather, oversight – of the past thirty years, is the inability of successive governments to get to grips with the boom and bust of the housing market. Since the war, we have seen at least three major cyclical busts, and countless smaller ones. New measures announced in Thursday's Mansion House speech are welcome, and perfectly fine as far as they go. But they fall dramatically short of a complete solution. There are two underlying reasons for the deficiencies of the UK housing market. One is the powerful vested interest which has built up around Britain’s restrictive planning laws, making development both extraordinarily expensive by international standards and...
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War of words over CBA financial advice victims June 17, 2014   Adele Ferguson  SMH ·             Commonwealth Bank and the Australian Securities and Investments Commission are having a war of words in relation to the compensation process offered to victims of the bank's financial planning scandal. While the spat continues, it raises more questions than it answers about the role of ASIC and CBA in dealing with clients who saw their life savings decimated by more than a few bad financial planning apples. A confidential report from the bank to a Senate committee says ASIC was well aware that the bank's compensation process was not ''consistently applied'' to affected customers of advisers where there were concerns about the quality of their advice. It says ASIC was fully informed about changes to its compensation scheme. These changes included not offering all affected victims the same compensation process that it offered...
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http://www.theguardian.com/business/2014/may/30/bnp-paribas-faces-10bn-fine-us-sanctions-investigation Friday 30 May 2014 BNP Paribas faces fine of more than $10bn in US sanctions investigation US justice department pushing France's biggest bank to plead guilty to charges it violated US sanctions against Iran. France's biggest bank, is reported to be facing a fine of more than $10bn (£6bn) to settle allegations that it violated US sanctions against Iran and other countries. The US justice department is pushing the bank to plead guilty to the charges and pay one of the biggest penalties ever imposed on a bank, according to the Wall Street Journal. A deal between the bank and the authorities is still weeks away and the final penalty could yet come in lower than $10bn. The Journal said BNP was seeking to pay less than $8bn, though a person familiar with the bank said its negotiators had not proposed that figure to the justice department.   The US...
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http://www.abc.net.au/4corners/stories/s72783.htm Australian Broadcasting Corporation FOUR CORNERS Investigative journalism at its very best TV PROGRAM TRANSCRIPT LOCATION: abc.net.au > Four Corners > Archives URL: http://www.abc.net.au/4corners/stories/s72783.htm Broadcast: 10/03/97 Banks Behaving Badly This program reveals why the banking industry has lost our trust and how some banks bend the rules and break the law. We reveal a bonus system which rewards bank officials for forcing businesses to the wall. Bank malpractices are revealed and the devastating effect that these have on the lives and businesses that are affected by them. --------- Reporter: Andrew Fowler Producer: Ashley Smith Research: Meena David Bob Allen, Accountant: It's the biggest bit of bastardry I've ever seen in all my commercial life Andrew Fowler: After more than a decade of free-market deregulation Australia's banks are out of control...............   Diane Felkin, Former Advanced Bank Customer: One of the gentlemen actually said f you don't do it my way you're...
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