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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: Banks emails to Broker Channel show how Low Docs were intended to target 'Older Persons'

Posted by on in ROYAL COMMISSION URGENT
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http://www.macrobusiness.com.au/2013/06/uncovering-australias-sub-prime-mortgage-lending/

 

3 June 2013   By Leith van Onselen

Last year, The Australian newspaper published some great articles questioning the commonly held view that Australia’s banking sector is conservative.  In April 2012, The Australian uncovered how Australia’s largest banks were being forced to forgive mortgage debts of borrowers granted loans based on falsified or fraudulent information supplied by mortgage brokers.   Then in June 2012, 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.

In August 2012, The Australian reported on instances where the banks had been enticing elderly Australians into Ponzi-like mortgages that they had no way of repaying, as well as provided detailed coverage on the Senate committee into banking, where evidence of widespread improper lending practices were revealed. The Australian also revealed that lenders had been refusing to provide low-doc borrowers with copies of their applications, while other lenders had told borrowers that such documents had been destroyed.  Finally, in September 2012, The Australian revealed how higher-risk low-doc lending was making a comeback, as well as data suggesting that sub-prime lending was more widespread than previously thought.

Now it seems the baton has passed to Fairfax, which has published some thought-provoking articles over the past few days questioning the prevalence of sub-prime lending in Australia.   Over the weekend, Michael West published a ripper article revealing that Australia’s major banks had provided large mortgages to Australians aged over 90. And today, West has published a detailed article suggesting that Australia’s banks have systematically engaged in sub-prime lending via their broker channels, as well as widespread failures by ASIC to investigate these claims:

…emails which are being released – sent from 30 banks and other lenders into the 20,000-strong mortgage broker ‘channel’ – prove the banks are calling the shots. The emails examined by BusinessDay suggest some banks orchestrated the reckless fall in lending standards as the credit boom approached its crescendo in 2007.

One after another, they show business development managers working for banks telling mortgage brokers what to do, from the “ABNs for a day” lurk for small business people, to providing reams of detailed advice on figures to enter, and figures to ignore, as inputs in the internal computer system of the banks which determined the loan approval…

Officially, the regulators are yet to accept that any of this constitutes evidence of an investigation into the banks – only the brokers have faced scrutiny…

According to another article by West, published today, consumer rights campaigner, Denise Brailey, will publically release 2500 private emails and bank documents exposing what she describes as ”Australia’s sub-prime crisis”. Hopefully public pressure will force Australia’s regulators to conduct a thorough investigation of such activities.

 

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Comments

  • doyla66
    doyla66 Tuesday, 20 May 2014

    Duped

    It's time to get on with the job of exposing banks and lenders of their dirty tricks and deceitful scam which used forgery and fraud on loan application forms to which borrowers were unaware of the complex method used, and in doing so banks and lenders would claim every cent from unsuspecting borrowers and eventually take their family home. A Royal Commission into this fraud is a must by this government and in doing so may start getting public support back. Leaving borrowers destitute when bitten by bank and lenders fraud is not good for the economy nor the budget as this scam has effected mostly, not always, but mostly people who were going to self fund their retirement but now find it necessary to go onto welfare. Government needs to wake up to this and stop taking advise from their banking buddies. The noose is closing on dirty banking tricks and fraud, we know the senators are well aware of it and very interested in decisions coming from the EDR's at present.

  • doyla66
    doyla66 Wednesday, 21 May 2014

    The burning question is who are guilty of allowing it to happen? Knowing some of them have taken to signing their new Bankster Oath is an admission of guilt in anybody's view proving a handful of them must still have an iota of conscience left or does it? To be imprudent of course means lacking self-restraint when it would be "very wise to have it" and the definition of being prudent is to be "wise or shrewd," . However if one adds the prefix im- meaning "not," suddenly you have an adjective that describes the opposite of being wise or shrewd. An imprudent person does not give any thought to any consequences but when the pressure cooker starts reaching boiling point some who have been guilty begin to realise that careless, wild, imprudent behavior can see them land them in very big trouble. Read an interesting article a few weeks ago where somebody watching very carefully is doing a bit of number crunching of a different kind reporting there had now been some 24 mysterious bankster suicides! History perhaps repeating itself as that noose continues to tighten as more and more of what they have all been up to is being daily exposed?

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