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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: Big Bankster Reveal Part XII : RAMS/RHG & RESIMAC: "We win you lose."

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RAMS    11 January 2006  HTPD  to all brokers

Scenario:  Broker called our support team.  Client is a single parent with two children looking to refinance existing home loan in order to reduce monthly payments.  Existing debt was $266,000 and property valued at $280,000 (95%LVR).  Income was satisfactory.  Our support team was able to confirm update of lending policy guidelines up to 95% LVR for refinance loans.  Borrower benefited etc…

RAMS  18 February 2006  BDM to broker

Because of your ongoing support it has allowed me to be RAM’s number one BDM so RAMS management has set a  challenge with generous $$$ reward.   I am requesting your help in keeping my number one position in WA……..entire team at RAMS Home Loans.

 

Key points to remember:

Very generous servicing calculator and new assessment rate.

Pro pack Low Doc

Low Doc 80% no ABN numbers

No Doc 80%

 

RAMS    21 February 2006   HTPD  to all brokers

Check out our new 80% No Doc policy.  It’s a first for the No Doc market (others @ 70%)

New LVR limits for Self Employed Pro Pack (500 plus) 80%LVR

 

RAMS    9 March 2006   HTPD  to all brokers

RAMS No Doc Policy – now available up to 80% LVR

No income declaration required

S/employed 2 years ABN or for professional investors accountants verification of Net Assets of 2.5 times loan amount.

Split Loans – switching

No genuine savings required – borrow up to 110% LVR of full purchase price.

Pay no MI and save thousands.

Sponsor family can provide limited guarantee.

“You need to guide your clients….”

 

RAMS  29 March 2006  SAM to all brokers

First launched March 2005, the RAMS Origination System is designed to support our originator and broker partners.  It has provided automated loan decisions and has online links to Baycorp and GE.  In addition, it enables Brokers to quickly and easily keep track of clients’ loan applications within a web-based online status tracking facility and to receive SMS and email updates at 6 critical milestones in the loan process.

“We have doubled our business volume.  To Our Broker Partners our heartfelt thanks”

Conditional Approval in 24 hours

Unconditional approval in 24 hours of valuation Settlement in 24 hours of unconditional approval

 

RAMS  2 April 2006  BDM to broker

Just in reference to the above file, if client gives us a letter from the accountant to advice (sic) that the client has been self-employed for more than 2 years, then I can get that loan re-assessed as a one-off.  Unfortunately because we have seen the A& L we cannot relook at the file as a No Doc.

RAMS    6 April 2006   SAM  to all brokers

RAMS self employed Pro Pack 70% LVR – loans >$150,000

Minimum 2 years self employed, NO ABN required.

Low paperwork: signed income declaration and A & L statement only.

No need for full financials or accountant verification

Free redraw min of $100

No LMI for 79% LVR and $500,000

Split loans, switching etc.

RAMS ZERO HOME LOAN SPECIAL  - NEW – for full doc clients that don’t qualify for Pro Pack rates:

Maximum 97% LVR (plus capitalise MI up to max of 100% LVR

RAMS Self Employed Pro Pack 70% LVR (80% >$500,000)

Salary credit – weekly, fortnightly and monthly

[How can self employed have a salary credit?] Interesting

 

Demand for Low Docs still high.  Datamonitor shows Low Doc market accounts for 16.1% of total housing lending, with volume of Low docs increasing substantially over past 5 years:

 

2006       $37.9 Billion

2005       $33.7 Billion

2002       $17.5 Billion

Low Docs a core market segment…RAMS leads the way….

RAMS   13 April 2006  HTPD  to all brokers

RAMS win double MPA gongs.  RAMS has taken out top honours in MPA Awards

Highly recommended in BDM support

Best performing non bank lending in Australia

Re 300 brokers surveyed: 62% brokers channelled more business through non bank lenders than previous year.

 

Scenario:  Broker called re self employed client with 2 year ABN.  He wanted to purchase an investment property in NSW for $750,000.  He did not want to state his income.  The client met our criteria for new NO DOC 80 POLICY.   We were able to lend 80%LVR

 

RAMS  9 May 2006  Head of Sales to broker

We are proud to be part of your lender panel and we recognise the opportunity in partnering professionals like you.  The last twelve months have seen RAMSA Home Loans take on a significant share of the broker channel as a result of flexible policy’s and speedy turnaround, competitive products and contactable service oriented account managers.

2006 MPA Magazine as voted by the brokers 1st in Approval Turnaround Times.

 

RAMS  11 May 2006   HTPD  to all brokers

RAMS investor home loans: tax deduct entire payment for longer – up to 10 years interest only.

Up to 97% LVR – generous serviceability assessment.

100% capped LMI

Regulated and unregulated purposes

No additional payments first five years

Min loan $100,000

Serviceability calculations include: - Negative gearing and 80% of rental income.

 

RAMS  7 June 2006    HTPD (Head of 3rd Party Distribution) to all brokers

RAMS New Low Doc range – better than ever 100% of the purchase price, no deposit.

No LMI Payable – Low Doc loans up to $1 million

No genuine savings required

Debt Consolidation up to 95% LVR

 

Scenario:  Broker wanted to refinance a client’s standard variable rate home loan of $450,000 and consolidate credit card debt of $10,000, plus unsecured PL of $35,000, plus an additional $25,000 to use as a deposit of the purchase of an investment property.  Her home was valued at $550,000.  RAMS was able to lend the full $520,000 she required.  She increased her debt but lowered her monthly repayments!”

 

RAMS  9 June 2006  BDM to broker

In answer to Broker question:  “The best scenario (for UK arrival) would be a 70% No Doc as a self employed builder as he only needs to be self employed for one day.  We can’t go to 80% Low Doc as his Visa ID will show newly kangaroo.” 

RAMS  7 July 2006  BDM to broker

95% Non-genuine loans

No LMI on Low Docs of up to $1 million.

80% Low Docs with NO ABN numbers.

 

RAMS  5 September 2006  Head of Broker Sales to broker

Congratulations on being one of our top loan writers….new RAMS record for applications from the broker channel.  With your support as one of our best supporters, we have grown over 78% in the last 12 months……..

RAMS  20 October 2006   HTPD to all brokers

Tapping into this lucrative sector may be easier than you think: Investors

Our October newsletter gives some practical pointers for getting started.

Self Employed Pro Pack – same benefits as PAYG clients.

Up to 80% LVR, capitalise LMI up to 82% LVR

Loans over $150,000

Up to 5 years interest only.

No ABN required, min 2 yrs self employed

No need for full financials or accountant verification,

Signed income declaration, and A& L only to support application.

“Your average investor becomes anxious when they are not fully leveraged.”

Speak to tax accountants to see if they have clients who invest in property for tax purposes.

RAMS  16 November 2006   HTPD to all brokers

Up to 100%LVR for investment purposes.  Client must own their own home.

Minimum loan $250,000 (Max $1 million)

Interest capitalisation for first 10 years

RAMS Line of Credit is ideally suited for those who want to access equity in their property for investments and purchases.

 

Scenario: “A client had a fixed rate mortgage with another lender of $280,000 against his home valued at $400,000 (70%LVR). He wanted to raise the deposit for the purchase of investment property, but did not want to incur break costs.  We advised the client could actually borrow 100% of the investment property purchase price with RAMS as he had > 20% equity in his home, so no need for him to raise funds for a deposit.  In addition to avoiding break costs, the client increases his potential to tax-deduct the interest payments associated with the 100% of the full purchase price.”

 

RAMS  21 December 2006  HTPD to all brokers

RAMS showcase a great new product for self-employed borrowers – RAMS Low Doc 85 – without full financials.

No need for accountant verification

If client borrows 85% LVR, no ABN, 2 years self-employed in same business required.

Signed income declaration and A&L only to support application.

 

Cut in Half: only 12 months self employment required for new Low Doc loans up to 70%LVR

No ABN required, stated income and A&L to support application. Effective 1/12/06.

No LMI costs

No need for accountant verification

 

Scenario:  broker contacts us – has self-employed client who wants to refinance a loan of $475,000 against property valued to $650,000.  The client wants to release as much equity as possible, but doesn’t have up to date financials to support his loan. We advise that under our new Low Doc 85 policy we can lend up to 85% LVR ($552,500) and RAMS pays the LMI cost.  Client is able to access $77,500 – benefit from a preferential rate for the life of our loan on a RAMS 500 Plus Low Doc.  He is delighted to save thousands with no LMI costs!”

 

RAMS   2 January 2007  RAMS to all brokers

RAMS Home Loan Clearance Sale:  RAMS Line of Credit Pro Pack

No application fee

Up to 90%LVR

10 years interest capitalisation

Minimum  $150,000

Split loans and fixed rate options

 

RAMS  13 February 2007  HTPD to all brokers

Extending RAMS Low Doc 85 – allows self-employed clients to borrow more.

Up to 85% LVR and $800,000

No LMI

No need for full financials or accountant verification,

Signed income declaration, and A& L only to support application.

Don’t let your clients miss out.

RAMS Low Doc 500 plus

No Doc up to 80% LVR

No LMI for loans up to $1 million ($800,000 above 80% LVR)

Options for ex pats and PAYG

 

RAMS  7 March 2007  HTPD to all brokers

PMI extended its credit criteria – offers up to 100% LVR and $500,000 for investors and owner-occupiers in metro and $300,000 in regional.

 

RAMS  29 March 2007  BDM to all brokers

Special offer:

RAMS Low Doc 85 Option

Allows self-employed clients who don’t have full financials, access to high LVR home loan (less fees etc) No LMI Payable

 

RAMS  2 April 2007   HTPD  to all brokers

RAMS no valuation policy will be suspended due to market changes

Up to 80% LVR plus capitalisation of LMI

Min $150,000, maximum $1 million

No ABN, min. 2 years self-employed

Signed income declaration and A& L only to support application.

No need for full financials or accountant verification,  Free redraw (min $100)

MI Policy (GE) Low Doc 70% No restrictions tocash out.

RAMS  6 September 2007  SAM to all brokers

Low Docs 85% LVR.

No Docs 80% Low Docs

NO ABN numbers (except No Doc 80)

No LMI up to $1 million and 80% LVR (all other banks charge LMI on > 60%)

PAYG Low Doc up to 70% needs asset and liability statement

 

RAMS  15 September 2007  BDM to broker

Broker asks: “My understanding is that RAMS do a 70% No Doc one day self employed.  Could this client become self employed overnight and register an ABN then qualify for a 70% No Doc?”

RAMS reply:  This would be correct.  LMI may question…….

RAMS  17 September 2007  Sales Account Manager to broker

The only No Doc product that requires an ABN is the No Doc 80 which the ABN needs to be registered for 2 years. 

RAMS  18 September 2007   SAM to all brokers

LMI capped above 95%

No genuine savings required

2 years discharged bankrupts at 95% LVR

No Doc 80% LVR

Low Doc 85% LVR, no ABN or LMI

 

RAMS  4 October 2007   SAM to all brokers

RAMS will finance up to 95% LVR Refinance

RAMS  8 October 2007  SAM to broker

PAYG Low Doc Policy – Up to 70% LVR

Self-certification with stated income required.

A&L and employment details required

No minimum income (probation OK), NO supporting income or employment docs required

Purpose can be regulated or unregulated

Available on all RAMS Low Docs…..cash out

 

RAMS  20 November 2007  SAM to all brokers

Low Doc 85 / No Doc 80 / PAYG Low Doc 70

Overtime accepted in servicing

 

RAMS    19 December  2007 SAM to broker

RAMS flyer for Credit Points of difference

“RENT can now be used as savings.”

Generous Service Calculator for Line of Credit loans.

Refinance to 95% - plus 5 debts and cash out….

Brokers can choose valuers of choice from panel.

Low Doc/No Doc Policy – No Doc 80, Low Doc 85, PAYG Low Doc 70

RAMS 100% no deposit home loans up to $600,000. No genuine savings required.

 

RAMS  24 December 2007  WA State Manager  to all brokers

RAMS change over to Westpac:  “new era of RAMS” “WE are currently developing innovative products for the broker channel…”

Flyer attached to email:  “We’re behind brokers…”  RAMS referring to “your customers….”

RAMS Q & A:  Refers to customers again: “our research shows customers value RAMS…hassle-free service….fall out from sub prime markets, RAMS ….will soon be financially backed by Westpac…..benefits of a secure and stable bank…..”  No applications to be sent to RHG after 31st December.

The Westpac acquisition did not include the purchase of the broker channel.  However RAMS has made the decision to continue to participate in the broker channel in a new way.  The RAMS broker channel relaunched under the RAMS brand name and will be run separate to the Westpac  broker channel.  All broker agreements revised under RFPL.

 

“Old RAMS” Customers will be redirected to RHG.   RHG Customers will need to call the RHG customer assistance line….”

 

RAMS  8 August 2008  WA State Manager  to all brokers

Dear Valued Business Partner

The Westpac purchase of the RAMS brand and distribution network was finalised on 4th January 2008. 

 “Refresher Training Course…perhaps you would prefer to invite one of us along to your sales meeting.”

 

RESIMAC    16 May 2008  BDM to all brokers

Do you have any declined deals on your desk?

Any deals where LMI said No?

Call me today…..

 

Lo Docs 90%

Credit Impairment

100% overtime used

100% commission used

Free redraw

Instant conditional approval when lodged online.

 

RESIMAC  / NOVASURE 19 May 2008  Dir of Sales  to all brokers

To our valued Customers

As you know the market has seen a significant shift away from loans that are of high risk.

Effective immediately: Constructions loans no longer accepted.

Maximum LVR on Low Doc capped at 90%

All Lo Docs now require an ABN registered for 2 years: self employed for two years.

 

RESIMAC  / NOVASURE 4 August 2008  Dir of Sales  to all brokers

Panel solicitors will not be permitted to take instructions from originators to collect applications and brokerage fees in excess of those disclosed in the loan agreement.  This change is effective immediately.

 

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Comments

  • doyla66
    doyla66 Wednesday, 05 December 2012

    We hope our FOS case manager is reading this.

  • doyla66
    doyla66 Thursday, 06 December 2012

    FOS still wouldn't doing anything if they were. Well, perhaps there might be some 'oh my, my' but that is about it. Sorry, but my eyes are wide awake where they're concerned. Useless as!

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