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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.

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Australia’s sub prime mortgage scandal grows

Posted by on in Fraudulent Loan Apps
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By Leith van Onselen

Claims that Australia’s banking sector is conservative, safe and secure have taken a bath in recent days as evidence has emerged of Australia’s own sub-prime lending scandal.

In April, we learned via the Australian newspaper how Australia’s largest banks are being forced to forgive mortgage debts of borrowers granted loans based on falsified or fraudulent information supplied by mortgage brokers.

Then in June, the Australian followed-up with further reports (here and here) of Australian sub-prime lending, and the battle playing-out between unscrupulous lenders and borrowers.

Now the Senate Inquiry into the post-GFC banking sector has revealed several instances of banks providing home loans to people who can’t afford them, and doctoring the paperwork so the loans looked okay. As well as allegations of widespread boosting in loan approvals.

Perhaps the most shocking of the revelations are instances where the banks have been enticing elderly Australians into Ponzi-like mortgages that they had no way of repaying.

In response to the evidence of widespread improper lending practices and the subsequent regulatory inaction, National Party Senator, John Williams, is now calling for a Royal Commission into the banking sector, noting that “If only 10 per cent of what comes in to my office is true . . . we have a problem and we should have a royal commission”.  

For now, Australia’s lenders appear reluctant to cooperate. With a Document Retention policy that would do the tobacco industry proud, lenders are refusing to provide low-doc borrowers with copies of their applications, while other lenders have told borrowers that such documents have been destroyed.

Last night’s 7.30 Report ran a story shining more light on the emerging sub-prime scandal. The video is above and the transcript is provided below. You can find the original HD video and transcript here.

Read more and view clips of Michelle talking to ABC 7.30 Report's Stephen Long

http://www.macrobusiness.com.au/2012/08/australias-sub-prime-mortgage-scandal-grows/

Thankyou Leith - great article :)

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Comments

  • doyla66
    doyla66 Tuesday, 14 August 2012

    Please read the many comments of Leith's site at the end of his article. Very interesting :)

  • doyla66
    doyla66 Tuesday, 14 August 2012

    Thank you Leith for your continued high quality unbiased reporting of this issue. That is all we the pawns in this scandel ask for.

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