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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: Enter the "ALT" Docs - more DEBT. "Cheap" loans are High Risk and bring grief to consumers

Posted by on in Consumer Protection Disaster
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Mortgage manager slashes risk fee on alt doc loan to 0.5%

    Australian Broker News
by AB | 31 Jul 2013

Better Mortgage Management has reduced the risk fee on its Capital Specialist Alt Doc Gold (Lo Doc) loan to just 0.5%, which the group believes to be the cheapest risk fee or mortgage insurance premium in the market for clear credit alt doc loans greater than 60% LVR.

Coupled with a rate of 6.99% at 80% LVR, BMM managing director, Murray Cowan, says accessing finance with unlimited cash out has become ‘much more affordable’ for self-employed borrowers in recent months amid an increase in alt doc lending.

Cowan believes the reduction in risk fees will be welcomed by brokers, as it will potentially save borrowers thousands of dollars and remove a potential barrier to writing the application.

“Risk fees or mortgage insurance (where available) on comparable loans is 1.5% to 2.5% of the loan amount, so when we reduce the risk fee to this extent it substantially improves the affordability of the loan” says Cowan.

“For instance, on a loan of $500,000 with the previous risk fee of 1.8%, the saving will be $6500 with the new fee of $2500 compared to $9000 previously.”

With the low risk fee only in place for a limited time, Cowan says it’s an ‘opportune’ time for brokers to review their databases for self-employed borrowers who will benefit before the offer ends on September 30.

 “Alt Doc lending is different to years gone by and brokers do have to do more legwork, but it is a legitimate form of lending and brokers wouldn't be providing a full service to their clients if they didn't consider all options.”

Warning to Brokers from BFCSA:

Brokers have to do more work to release banks from liability.  That is the whole point.  Brokers should get independent legal advice as to whether they will be prosecuted for service calculator use.  Our members are on the side of the Brokers, not the Lenders, so this is friendly advice.  Beware of banks/lenders offering "ABN's for a day" and "No GST."  ASIC will target YOU, not the lender.


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  • doyla66
    doyla66 Friday, 02 August 2013

    DPP offers

    DirectorPublicProsecution offers "alt" plea bargain to all mortgage-managers, slashes "alt" in the dock full service to 10yrs....

  • doyla66
    doyla66 Saturday, 03 August 2013

    Director of Public Prosecutions slashes "alt" plea bargain from 15yrs to 8yrs to mortgage-managers pushing tainted credit products; offer ends on 30 September --includes fully serviced cell (share accom')

  • doyla66
    doyla66 Sunday, 04 August 2013

    How many borrowers have memory loss - Bank West made "too good to be true" offers, even better than these!

    Bank West used similar stunts as part of their East Coast Push promotion through Brokers in order to build up their loan book.
    Brokers have been feeling the heat as one after another of these "generous" loans is found to have fatal flaws, illegal practices, failure to comply with Banking Code Section 25, bullying, lying and deceitful practices of inexperienced front line credit staff, abuse of position, unconscionable conduct, unconscionable lending, refusal to permit borrower legitimate access to LMI, etc, etc ...
    It didn't work well for Bank West or their borrowers - why would such practices work now?
    Only the desperate, the ignorant and those subjected to broker hard sell would touch such lending products!
    If they look carefully at the comparative interest rates they will discover that not only has the lending rate been jacked up to offer the discount rate but there will be other catches. Get an experienced consumer advocate / legal service to check every piece of paperwork and if in doubt, don't sign anything!

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