Broker comments from Australian Broker News:

Everyone knows that the lenders serviceability calculators are a joke. Get real and service each loan to each individual applicants own circumstances.

and this from Broker to RAJ VENGA as CEO of COSL


But Raj, you forget that profit is king, not prudent lending or responsible lending. Now let's sit back and wait for the backlash from lenders and others telling you to butt out.

and this:

COSL's warning should be heeded as it's the broker in a few years time who will get the first call when rates go back up to the high six percent and borrowers can't pay, and it's the broker who will go through an agonising COSL investigation process to clear their name.

From MY Desk:  This email address is being protected from spambots. You need JavaScript enabled to view it.

NOTE:  DO NOT WRITE TO RAJ as he will say two thirds of our complaints from borrowers are fraud by our lender members using the service calculator to inflate incomes without the borrowers knowledge or consent.  But we then show borrowers the EXIT DOOR and tell them COSL does not handle matters of fraud and COSL does not investigate fraud and COSL does not alert ASIC there is fraud (nor do they and do they have obligation to do so?).  We have hundreds of COSL letters such as these..................and what is really between the lines of nonsense.

COSL is looking after the interest of their MEMBER LENDERS................of course they are....................

SO WHAT DOES RAJ SAY because he goes after the Brokers not the Lenders who approved these dodgy loans........we know that.  Our files are full of those examples.   Wait til the Borrower figures out the fraud is in the SERVICE CALCULATOR and the Brokers is doomed to take the blame.


KEEP READING...............


Borrower's stretching themselves too far?  And who suggested that?  Brokers are NOT LICENSED to hand out financial strategies or financial advice.  ASIC know that.  ASIC let brokers use the BANK ENGINEERED STRATEGIES of financial engineering and then hand over the dirty deed to Brokers so later you can all be blamed and "put through the mill."  It's a Lender driven, lender commission driven strategy to make the Broker take the blame when the interest rates go up........... ASIC even allow Brokers to use a service calculator to financially engineer the incomes. 

Hello?  Anyone out there that has woken up to this yet?  Are our members the only ones who understand the BIGGEST BANK HEIST in Australia's history?  

You are all pawns in a grander plan and Brokers realise now that not only will the borrowers lose their homes, but all the relatives you were told by banks to "practice on" will lose their homes as well.  I know one young broker (sadly is now suicidal) who has had 6 family members lose their homes and he was taught by the Broker Industry and the Bank BDMs "you are helping everyone....get their finances in good order and help them allow their assets to work for them....then five years later the assets they did have that took individuals years to build up and accumulate security, has suddenly vanished.  Lenders wanted all the profits and no responsibility, no liability and no blame.  In other words Australian Banks were rigging their own horse race!!!!! 

Its the Lenders that sit around the Board room tables and decide when "its time to leave the industry" and "we can now prick the bubble" and Sayonara. 

Happy Retirement for us, funded by the peasants and the brokers................."we worked hard for our money.  Who cares....regulators are are the pollies...........welcome to the real world of banksterisms." 


Credit Ombudsman warns borrowers are 'stretching themselves too far'

 AB News 23 October 2013

(Please note in easy speak RAJ is saying Lenders are still stitching up borrowers with imprudent loans and brokers will get the blame.  He knows that.  BFCSA knows that.  He is just being his usual polite self as he has to have lunch with the bankers.  We do not need to.  We know what lenders are doing and yes none of it is lawful.) 


COSL Credit Ombudsman, Raj Venga, has warned that new home buyers may be stretching themselves too far in the pursuit of their dream home. 

“Interest rates at record lows are reported to have fuelled a surge in house prices. New home buyers and investors seem to be caught up in a housing frenzy which has already pushed Sydney’s auction clearance rates to record highs. Australians are borrowing more to purchase properties”, he says. 

Venga notes that most lenders tightened their lending criteria post-GFC, but that there are now an increasing number of loans available to home buyers with small deposits, some as low as 5%. 

“Borrowers may be left with loans they cannot afford when the record low interest rates start to rise, as they inevitably will. As it is, one third of the complaints we receive are about mortgage stress and financial hardship.” 

Venga also says the rate of growth in New Zealand house prices had prompted the New Zealand Reserve Bank to impose restrictions on the loan-to-value ratio of housing loans – something which isn’t entirely off the cards here. 

“Whether or not this is or should be introduced in Australia, we expect lenders to maintain prudent lending practices and adhere to their responsible lending obligations under the law. In an environment of historically low interest rates, lenders should consider whether they are using appropriate interest rate buffers and margins on living expenses when assessing serviceability.” 

RAJ is warning lenders to pull their heads in....just because ASIC are polite and COSL is slack...........borrowers are still being roped in by the thousands and are being maliciously used to manipulate the property market and create the biggest bubble the world has seen.  Yes we know Raj   This email address is being protected from spambots. You need JavaScript enabled to view it.

 More on the Thoughts of Chairman Raj later next month and you will then hear the Brokers' gasp!!!