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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 slowly waking up to fudged Mortgage figures from Banks and what it means for Australia

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New APRA data beats mortgage records

by AB | 26 Feb 2014  Australian Broker News

 

The Australian Prudential Regulations Authority has released new data which indicates the prevalence of investors and subsequently interest-only mortgages within the market is rising at record levels.

APRA’S domestic Australian Authorised Deposit-taking Institutions’ property exposure data for the December 2013 quarter shows 34.6% of all mortgagees had a loan with an offset facility – a record high since the archives began in March 2008.

“The rising proportion of loans with an offset facility indicates to me that many mortgagees are utilising these facilities to reduce their mortgage liability whilst still having access to those funds,” said Cameron Kusher, senior research analyst at RP Data.

This is supported by recent RBA data which indicates the typical mortgagee is around 21 months ahead in their mortgage repayments, he said.

The APRA data also shows a record high 35% of all outstanding loans are interest-only mortgages. This is up from 34.6% at the end of the September 2013 quarter and 33.8% in December 2012.

The average amount outstanding for a residential loan was recorded at $233,500 at the end of December 2013.  The figure is also a record high, up from $231,700 at the end of September 2013 and $228,300 at the end of December 2013. 

But Kusher said what is “concerning” is the typical amount outstanding for interest-only mortgages is $295,300, up from $294,300 at the end of the previous quarter and $294,100 at the end of 2012. 

“Those mortgagees that are not reducing their principal have much higher overall debt levels than those who are,” he said.

Over the quarter, the proportion of interest-only mortgages hit a record high of 38.8%, up from 37.2% the previous quarter and 35.0% at the same time the previous year. 

“Of course, the risks are that these buyers stretch themselves too far and when mortgage rates begin to be normalised they have an increased risk of default,” said Kusher.

The data shows the prevalence of investors and subsequently interest-only mortgages within the market is rising. 

“This is not without risks particularly if housing market conditions or monetary policy settings shift rapidly,” Kusher said.

“Should interest rates rise rapidly in the future, the interest proportion of mortgage repayments would also quickly rise with most mortgagees on variable rate mortgages.”

These were SPRUIKED INVESTORS which we warned Peter Kell ASIC of this in 2003.  All will lose their homes but banks propping up the walking wounded so as to minimise the default figures.  Wait for the Big Bank Bang!  So where are the comparison figures for 2008?  Bet they tell a vastly different story.  Please ask APRA - what are the 2008-2009 comparisons please, when the "new laws" were deemed so crucially necessary to curb bad bank behaviour?

 The old saying:  what goes This email address is being protected from spambots. You need JavaScript enabled to view it. 

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  • doyla66
    doyla66 Thursday, 27 February 2014

    Principal and interest

    what happens when the interest only period expires and payments have to increased to cover principal plus interest

  • doyla66
    doyla66 Thursday, 27 February 2014

    The banks send out a letter asking if you would like to continue with interest only for another 5 years.

  • Denise
    Denise Thursday, 27 February 2014

    Yes Maria, the BIG BANK STING - once fish on hook stitch them up for another five years of pain and heartache. Where is the Prime Minister? [email protected]

  • Denise
    Denise Thursday, 27 February 2014

    Yes Tom, once five year interest only period finishes you will be forced to hand over your home (as you know) bank wins you lose! FRAUD PAYS for BANKERS..........................Stealing Homes from vulnerable people was always the end [email protected]

  • doyla66
    doyla66 Thursday, 27 February 2014

    Remember America, 2008 people just walked out of their mortgages. The Sub Prime Era.

    Whats the bet if you were spruiked at seminars and the likes almost the first line that came out of the crooks mouth was DONT THINK SUB PRIME CAN EVER HAPPEN IN AUSTRALIA OUR SYSTEM IS SET UP SO IT CANT HAPPEN. I would certainly like a show of hands as to who and how many of you poor unsuspecting that are now stuck right in the middle of SUB PRIME AUSSIE WAY heard that as the opener at these seminars. Its called in their dirty Bankster run education system as the CALM and REASSURE TACTIC once we eat that opening line these sellers of Bank created toxic products have you half way to a sale. Well remember good old US of A the Banks were left holding useless real estate that they could not sell and it bought their Banking and Finance system to its knees. Here of course they were right it doesn't happen the same our Banksters are a protected species even if we did just walk away from our debt and hand over the property we are still left to pay any debt related.
    The Banksters of course do you no favours once the property is repossessed they fire sale it and don't try to assist you as their money is guaranteed. Remember further to this situation is the Government Guarantee if the Banksters were to fail they get propped up by our Government using our taxation dollar, "SHAFTED AGAIN FOLKS". My question to our GOVERNMENT is "are we still going to give the Government Guarantee to the Banks if they are found have committed FRAUD and then FAIL when they are made to repay the people from the "PRECEEDS OF CRIME". These gangsters should be treated no better than any other criminal organisation when the REAL TRUTH is exposed and if it is not exposed then our problems with the TRUTH go much higher.
    Time to clean up our own backyard, at least the Americans have had enough brains and balls to attack their issues front on not allowing even the big players to walk away from their crimes.

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