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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: Did you know? Mortgage Insurers will not pay out if fraud has been committed by your Lender

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Reposted blog from Sunday, 28 October 2012 in Lawyers and Insurance Co's

 

Managing fraud in the Mortgage Market

Spotlight Series - Issue 2 Genworth Financial (Mortgage Insurer)

 

http://www.genworth.com.au/downloads/4-2-3-Spotlight/spotlight-series-managing-fraud.pdf

 

 

Page 3 - "Furthermore, many within the industry may not realise that Lenders Mortgage Insurers are not licensed to cover losses suffered as a result of a fraud perpetrated by the lender or a third party acting on its behalf in the origination chain. As a result, the lender may seek to recover the losses from those who may be considered to be liable"

 

 
Comment Posted by portabello on Sunday, 28 October 2012 in Lawyers and Insurance Co's
 

 

I'm sure lenders will not want the fact that fraud has been committed by links in their chains to come out in court otherwise their insurance on the loan WILL NOT BE PAID!!

 

 

EDITOR: Yes indeedy!!!  Could be the banks never passed on the LMI premiums you paid for and reinsured their own risk. Now that happened before.....so have the Banksters pulled another trick...shareholders should be asking that one!

 

 

 

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  • doyla66
    doyla66 Wednesday, 04 December 2013

    I don't know about you but we paid over $10,000 LMI not realising at the time that we were not covered at all. We didn't have the money for the LMI fee, so it was just added on to the mortgage. How convenient..

    So why did ASIC's Legal help line rep (she's a lawyer she said) advise me to sue the Broker? We all know that Brokers don't approve loans, Credit assessors of the Lenders are authorised to do so. This is criminal what the banks are trying to get away with. More and more people are starting to wake up and realise what really has been going on. A Senate Inquiry into ASIC and CBA is the start of so much more to come. A Royal Commission into the whole banking and finance industry is what we consumers want.

    David Murray should step down too. How can an ex bank CEO be impartial to head a banking inquiry? He can't.

  • doyla66
    doyla66 Wednesday, 04 December 2013

    On the loan I have it says no LMI required, but still charged a Lenders Mortgage Risk Fee. Is this the same as Lenders mortgage insurance ?

  • doyla66
    doyla66 Wednesday, 04 December 2013

    What is Risk Fee? from a google search for Australian lenders

    "Risk Fee is a fee paid instead of LMI. The Mortgage Risk Fee concept was developed by an offshore bank which operates in Australia whereby they can underwrite higher LVR loan and not seek LMI. This risk fee protects the lenders loan instead of Lenders Mortgage Insurance. This product is cheaper than traditional LMI and is generally unknown to the public."

    Types of Lenders who offer Risk Fee

    "There are several lenders who offer a Risk Fee instead of LMI. Some of these are banks and a small number of non bank lenders.

    The major banks who offer a Risk Fee instead of LMI do so to save the client LMI costs. This creates a niche area where they sell loans at high LVR with discounted costs in comparison to other big bank lenders.

    Non bank lenders who offer a Risk Fee are generally non confirming lenders who can’t get LMI for high LVR loans and thus charge a Risk Fee to mitigate any possible losses. This allows them to lend to borrowers who could have had bad credit issues. Risk Fees of non bank lenders are generally higher as they cater for higher risk borrowers. A Mortgage Providers broker (Comment - as we all know, THEIR agent) can guide you through the difference and its possible applications to you."

    AND to confuse you the borrower even more...

    "Names used for Risk Fee

    The lenders who offer a Risk Fee instead of LMI give the product a name. The various names include:

    1.REF (Reduced Equity Fee)
    2.LDP (Low Deposit Premium)
    3. Mortgage Risk Fee
    4. Equalisation Fee "

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