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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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BFCSA: 100% Loan to Value Ratio Home Loans Return to haunt the public some more (The con game continues)

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Article in the Herald Sun, Sunday 19th January 2014. Sophie Elsworth.

Desperate homebuyers are signing up to mortgage products with little or no deposit saved -- and in some cases taking out loans of more than 100 per cent.  In what some experts fear is a return to dangerous ways, some lenders are luring customers with no saving to take on hefty loans and become swamped with debt. Analysis of the nations home loan market by financial comparison website Mozo found dozens of products available to customers where they need virtually no money behind them to purchase raising concerns of whether they could repay the loan.  The maximum borrowing borrowing capacity is 120 per cent -- more than the value of the property, allowing borrowers to consolidate other debts. But some lenders do require guarantors to secure the loan.  Mozo spokesperson Kristy Lamont said there were mortgage products on offer that required no deposit. 

The article continues and is well worth reading. Snippets from the article include:  Rams fast track loan offers customers up to 120 per cent maximum loan but with conditions. ANZ has multiple home loan products allowing 100 percent loans, but requires a guarantor. Mortgage House offers 105 per cent loan with no guarantor.

Tom Godfrey, a spokesperson for consumer watchdog CHOICE, said he was "concerned that lenders were returning to the bad old days of before the global financial crisis."  "We've heard of banks lending up to 15% or 20% over the value of the actual home, a state of over gearing that can be a formula for disaster" he said.

MY FAVE:  in the article is this one from Steven Munchenburg of the ABA. "Banks were not taking on riskier customers and responsible lending was in full force."  "If banks had taken on higher-risk customers, you would expect to to see higher levels of loan defaults and missed loan payments" he said. "For Banks, loan arrears are at low levels. Australian banks lend responsibly and are required by law to do so" He said customers who applied for 95% or higher loans did not always get them"    

So what do we as BFCSA members say to this ludicrous and the hypocritical statements of Mr. Munchenburg.  ??????  

I know for one the Nab's responsible lending policies are out the window. Laws do no mean anything to Nab. I have been bullied, abused, ignored, deceived, humiliated and been dragged through the court system.

To this day I am still being subjected to the horrors of Nab although I am not at liberty to talk about it as yet.    I actually laughed when I read this.  What dumb statements to make. We all know the figures collated by the banks for the banks are manufactured to meet there obligations and nothing more.   Mr. Munchenburg I think you have your head in the sand.   Get into the real world and open your eyes.

Surely you are not another greedy grabber feeding from the same swill trough as the rest of them.   Wait a couple of years and see what happens with these poor customers and the default rate will be blown out of the water. Of course the figures collected will never be a true indication. Many sell before the Sheriff comes knocking because they are at the end of their tether and the embarrassment of mortgagee sale is way too much for them to bear.  These forced type sales don't make it through the courts or into the banks manufactured figures for defaults I have been told, but if Mr. Munchenburg would like to correct me go for it.    

 ED:  Minchenberg part of the cover-up.  He is lying as he KNOWS defaults and repossessions are hidden by his mates.  He KNOWS the refinancing rorts fudged the statistical data: REFINANCE THE LOAN WITH MORE BUFFER MONIES: = default rate down.   and it can stay a hidden defaulting loan for years and years and years.  GET IT?  Its then NOT RECORDED AS A REPOSSESSION.  And the file is then marked "settled" hiding the fraud and deceit once again.  And that is how you create the perfect BANKER FRAUD!

Nice one Mr Minchenberg.  Truth would be good for a change.  BFCSA Members know what is going on.................ask them.  Or would that be too embarrassing or a little beneath you?  I would call your actions "accessory before, after and during the FACT" This email address is being protected from spambots. You need JavaScript enabled to view it.

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  • doyla66
    doyla66 Monday, 20 January 2014

    I am beginning to feel I am living out a nightmare. Had a call yesterday from a cousin who bought into a new estate on the outskirts of a Victorian country town 1½ hours out of Melbourne. She reports that in her street of almost 40 homes most of the young families buying and moving in when she was a few years ago and catching the train into work in Dandenong (I hour away) and the City have gone and she saw a few police cars outside a few of them making her suspect they had vists from the sheriff! Now she has just found out she is one of just 4 property owners living in the street with all houses either rented up for rent or for sale! A friend in Melbourne reports there is a glut of empty apartments all around the City and there is a huge oversupply of new house and land packages everywhere on the outskirts of Melbourne and around many country towns and those sold off he plan to chinese investors end up sitting empty once completed for they just want to get their money out of China and are happy to land bank as they do in China where there are untold cities full of nothing but empty high-rise in what are nothing but ghost towns. Now today I am turning up untold sites (mainly US) full of something called loan modification which from all I can deduce thus far is some scheme the US Government bought in post GFC but 6 months or so ago did something akin to ordering banks and brokers to start lending again to prevent even more foreclosures and they are all right into it (even they who were named and shamed). Blowing out loan terms it seems to more than 40 years if need be and re-structing loans to make them fit alaong with sites selling software packages to do all on-line and within 24 hours along with other sites where brokers can buy lead generation lists of properties under foreclosure threat and those in default which surely must be coming from banks. Probably what is going on here in secret to keep all propped up and if yes could provide a big clue re why all the document shredding going on!

  • doyla66
    doyla66 Monday, 20 January 2014

    Organza isn't this a sad and sorry state of affairs. Young peoples dreams wrecked. Empty streets. You just have to take a visit to most country towns the smaller ones and see the empty shops. Our little town is but a shell of its former glory. When my kids (4) attended primary school there was over 100 children now there are 14. Actually am surprised it is still open. The Butcher is closed, the only cafe is closed, the service station is closed meaning the town does not have these facilities anymore. The oldies have died and are dieing out in the town and are being replaced with people looking for cheap accomodation and housing. I cannot remember any new homes being built for years and years except for one which replaced their burnt out home. Apparently from hearsay the town has a drug problem as I imagine most small towns do. One house is known as the meth house but I don't know anything about that only what the townies say but if there is smoke there is usually fire I think. The town not far away some 15kms has a land development broken into housing sites and from the best of my knowledge after 4 years not one block has sold. The Foodworks supermarket has had to pull the pin leaving only an IGA and you can imagine the one store is having a field day with pricing. They complain people go out of town to shop in bigger centres. Hey, money is tight these days. The Police station is not manned on a 24 hour basis and trying to get hold of a cop is nigh on impossible. I have had to contact the police in regards to stolen goods and you just keeping phoning and phoning. I think it was a week before anyone got back to me. I would hate it to be an emergency. This country and us Aussies are in trouble. When are the Government going to wake up to what is going on.???

  • doyla66
    doyla66 Monday, 20 January 2014

    Yes indeed shattered dreams and not just for our generation who have their homes stolen but the next and the next and the next..........all achieved has seen us become a third world country who receive no foreign aid! Most likely all those poor familes were they who bought with a first home owner grant when Rudd and Swan did what they then did to keep all hushed up and propped up and most sold sold for less than what they bought for and now have a debt they would not have had! 100 lashes for each of them for that crime As for our Uni. students - breaks my heart knowing they are all coming out with a mountain of debt to pay off and most of them will never find a job in their chosen field for even unemployment figures are fudged and the Govt. changed FIRB rules last year to give them stiff competition enabling all foreign students (full paying ones all of them) to apply for all graduate jobs and stay and work here for 4 years! No wonder all our Universities are installing squat loos for foreign students outnumber our students by a lot more than 50% and I believe that rort is the second highest money earner for Government after mining. They responsible all need to be rounded up and shot BUT they even took care of that didn't they in making all the goodies turn in their guns under Howard leaving only the baddies with them! As for police - headline in today's Sydney Daily Telegraphs is Rats in the Ranks - one in 40 police found to have criminal cvonvictions!

  • doyla66
    doyla66 Monday, 20 January 2014


    Forgot to add I watched today the lasted CEC report from 17 January which says mortgages propping up our banks are leveraged by 50 times which is even worse than in Europe whose banks are unable to meet capital requirements set down under Basel III re capital reserve instructions. So tell me what does one do when one is left with some money but not enough to buy anything outright at my age knowing banks are planning to steal even more of it if one leaves it in a bank?? By the way what have they done with Barnaby??

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