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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: APRA and Dr John Laker ignores 128% LVR's and Low Doc Loans. Laker states he is "Pathologically Worried" re Lending Standards

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Our Housing Bubble (and yes there is one), has been of concern since 2001 when lending standards plummeted to an all time low.  Our collection of consumers documents show that is the case and why.  The problem for Mr Laker is that he has never any need to meet and greet a consumers of banking toxic products.  Its not his thing.  Mr Laker as always, politely asks our Bankers: "please give me a few clues as to what you are all really doing.....there's good chaps."  John the answer is: lending standards were lowered in 2001 and you know that.  If you want the truth of a worrying situation talk to consumers, not the bandit banks.

Laker wants to know now in 2013, "how rigorously that lending is assessed as to the ability of the borrower to afford the loan?"

John you should KNOW that no rigorous assessment takes place on any mortgage loans full doc and low doc.  They are all approved by SKIPPY the Computer using a tool known as SPEEDY the Serviceability Calculator. You didn't know that John?   Banks told you porkies did they? You are in for a very rude "awakening."  This is where the bells whistles and lights all  start clanging better give me a call so I can fill you in on the past 12 years of regulatory slumber.

So for example - couple buy a home with zero deposit and are stitched up with LMI and 30 year interest only loan.  The Low Doc loan is unaffordable and guaranteed to implode within 4 - 6 years.  Bankers designed it that way.  Across the board - homes purchased for say $320k are now worth $250k.

Loan was 97% LVR at time of lending say 2008.  Loan was "approved by computer at $310K.  Payments were higher than rent and interest only.  Loan has climbed to $350k.  All states report higher mortgage debt than asking price,  as people try to sell their homes... in downward spiral property market, People are experiencing "home worth less than I paid" syndrome.  My humble calculator calculates that at 128% LVR.

Do not asks the Bankers.  They will lie to you in the same way they have been lying to the public.  APRA does not have a clue.........................Dr Laker says he is still alert.............................asleep at the wheel more like it.

Read the latest Broker News article twice - to absorb its underlying meaning:

APRA 'pathologically worried' about lending standards

by AB | 28 Nov 2013
APRA chairman John Laker says the regulator is “pathologically worried” about poor credit standards becoming pervasive.

Speaking at an economics lecture yesterday Laker said the regulator is “working assertively” with banks to ensure these are upheld.

"What we need to understand is how much of a banking institution's lending is done at a high loan-to-value ratio, how rigorously that lending is assessed as to the ability of the borrower to repay that,” he told the ABC.

"So we've got to go beyond that ad to actually say: what is this saying about the portfolio and about the quality of risk assessment?"

Despite more banks advertising loans with high LVR ratios, APRA audits had not found any evidence of lowering credit standards, said Laker – but the regulator is keenly alert to the possibility.

"In the past, when competition went beyond price, it took the form of loosening of credit standards," he said.

"I think our bank boards and our credit union and building society boards are all very well aware of that. So ask a prudential regulator are they worried about credit standards; yes, pathologically we do."
Rumours of loosening credit standards have been circulating since NAB CEO Cameron Clyne claimed at least one 'unnamed' competitor was weakening standards to gain market share, but no evidence of this has so far been found.


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  • Denise
    Denise Thursday, 28 November 2013

    Dr Laker you are the prudential regulator. We could forgive you for not looking too closely, but you have known of the Property Bubble looming in 2001.......The IMF warned you in 2003 remember - property market over heated - bubbles and troubles report? And we know APRA get their bank tainted figures from - yes indeed - the bank on trust! Banks do not fudge figures? Dr Laker our banks have turned FUDGED FIGURES into an art form. Remember the letter you had to personally send to all Bankers shortly after I warned the Senate on evidence in Bank Post GFC Inquiry 8th August that Government cannot profit from fraud and we had pensioners in default four years or more - non recorded we presume - and we asked the legitimate many of those defaults are there? Your letter must have been a hoot and the answer from each Banker would have been of more interest to the long suffering public. Please share with us the answer. Or do we have to ask under FOI? We would like APRA to show us just what it is they do other than collect handsome pay-packets the rest of us plebeians only dream about. [email protected]

  • doyla66
    doyla66 Sunday, 01 December 2013

    My oh My. Mr. Clyne has opened his mouth against another competitor and indicated "weakening of standards to gain market share". That is like the pot calling the kettle black Mr. Clyne. Dear Mr. Clyne please attend to your own "Nab's" imprudent lending practices. For years and years your lending practices have proven that Nab have an image problem. Aussies have the opinion that Nab are not to be trusted. Had a conversation with someone I met the other day and banks came into it, I did not instigate or mention anything about the absolute battle I had been having with Nab. This guy who I did not know from a bar of soap blurted out. "You never want to trust those B......ds Nab." Still there Mr. Clyne, the image never leaves the Nab just like a bad smell. !!!! Phew!!!!

  • doyla66
    doyla66 Sunday, 01 December 2013

    What a waste of time an AUDIT within the lenders organisation would have been. Surely Mr. Laker does not believe what the lenders would put forward for auditing. Cover ups would have been going on well before Mr. Lakers crew moved in. I would imagine the lenders would have been given plenty of notice that an audit was approaching. Clean up time. Like I said, can you imagine the paper shuffling, shredding, and deleting that was going on so all looked sweet.

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