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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: Gadens and ASIC Clear as mud: Denovan wades through the employment verification quagmire

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So much for Consumer Protection.  Denovan's solution is to hit the bottle!  Our Banking System is quite Manic.  Employment Verification is a blame game. And Australian Securities and Investment Commission ("ASIC") don't have a clue!  But the long suffering consumers of financial products engineered by Banksters know that to be true.  Denovan is upset that if things are slightly dodgy..............YES  JON, we have 1100 loans that are FULL ON DODGY.  Employment example: deckhand put down as ships captain.  Pensioner woman of 73 shown as "landscape garden."  Must be fit to shovel around huge rocks!    Hobby Artist written as "Artist" and earning $180,000 a year - who earns that from art?

It's your beloved Banksters Jon that approved this rubbish.  The same rubbish we are intent on fumigating..................Bank Officer BDM's taught the Brokers to write down "something other than investor as it looks a bit suspicious....."  Yep its back to the Dodgy Banks & lenders again.

Read Denovan's contribution to the Broker, Bankster debate in today's Australian Broker News.  We cannot wait to read YOUR  comments..........and those in Austn Broker News!  Brokers will be furious.  Let the Blame Games Begin!

“Clear as mud,” is how several readers described yesterday’s ASIC response to concerns surrounding client employment verification requirements.

Gadens Lawyers partner, Jon Denovan, says he sympathises with brokers but argues that common sense should prevail.

“Ordinarily, if you get a PAYG and you look at that, that would be sufficient in the absence of it raising any peculiar concerns. You certainly don’t need to go ringing the employer.”

However, if there’s anything that’s even ‘slightly dodgy’, Denovan says brokers need to make further enquiries.

“If this fellow gives me a PAYG slip, but I look at his bank statements and they’re not the same, then I need to make further enquiries. Also, if the consumer is in any way disadvantaged, like they’re really highly-geared, or they speak English poorly, or they’re poorly educated, then you have to make more enquiries because the law is assuming that they need more help.”

Denovan says that while it largely comes down to common sense, it is a change from the old situation, where, before ASIC regulation, ‘you could cop what you were given’.

“You can no longer cop what you’re given, you have to receive, think and decide – and if you fail to go through those steps, then you’re in breach of your licence regulations.  My favourite test is I put myself in the borrower’s situation and I say, ‘if I was a borrower, would I borrow this money?’ That’s what you’ve got to do at the end of the day to ensure that the loan is not unsuitable.”

Surprisingly, Denovan doesn’t believe ASIC could be any clearer in defining adequate employment verification.

“We’ve talked a lot about getting further guidance, but the whole problem is that it is scalable. The example is, if I came to you and said ‘look, I’ve been employed at the same job for 20 years and I want to borrow a 20% LVR’, then the enquiries that you would make would be completely different to if I’d been on the job six months and I want to borrow 95% LVR. In between those two extremes, there’s a lot of scalability – and common sense needs to prevail…Whether it’s good law or not is a different bloody question.”

The reality, he says, is that people come to brokers wanting brokers to find a loan and many brokers find it tough when the law stipulates that you aren’t supposed to help certain people.

“I mean, it’s a very strange arrangement, isn’t it? I think brokers are [confused] and they get different messages from different lenders – and I think some of the people who go around providing compliance services scare the sh*t out of [brokers] by making it all complex. But I think that, at the end of the day, it’s like my business; it’s heavily regulated being a lawyer.  I just use common sense and act honestly and I’ll be apples. That’s what the brokers need to do: use common sense and be honest, and you’ll be apples.”

On a final note, Denovan says his sympathy lies with the broker community in dealing with often complex lending regulations and offers one final piece of advice.

 “I think maybe the only solution might be to drink more.”

A Classic thought Jon: You say: "it’s like my business; it’s heavily regulated being a lawyer."  Yeah right. I had to fly over to Qld, Tassie, NSW and Victoria in year 1999 - 2001 to tidy up the mess left by THE SOLICITORS MORTGAGE SCANDAL where $350 million of retiree funds went up in smoke......Remember?  These charletans were peddling :"safe and secure retirement investment funds...."  ASIC allowed those same bods to continue "as you were boys" and morph into illegal; MIS scams.....and the game rolled on with a further $8 Billion going up in smoke.  Same Players.  

Perhaps the only thing we agree on is that ASIC is as usual, as clear as mud and a complete waste of space.   There should be a law against the EDR's and ASIC, quite frankly.  But you would disagree as you earn a living on the Board of COSL...................... and your beloved Gadens are neck deep in the dirty loans we are trying to expose........................hmmmmmm.  Its very clear to BFCSA Members what is going on in Banksterland.

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  • doyla66
    doyla66 Thursday, 18 April 2013

    All of you white collar criminals need the shit scared out of you.. instead of the slap on your limp wrists by ASIC

    I recently discovered that even The Code of Banking Practice is voluntary. Latrobe financial does not abide by the Code COSL tells me.. "We note that La Trobe does not subscribe to the Code of Banking Practice and therefore it does not apply to La Trobe. As such, we were unable to have regard to it when reviewing your complaint."

    What the ?!! I was under the impression that this was a regulation. Even if you are not a member no one can ignore the code.

  • doyla66
    doyla66 Saturday, 20 April 2013

    CBA are members, yet they also ignore the code. The Code of Banking Practice is worthless. It just gives the IMPRESSION that banks can be held accountable. It is not worth the paper it is written on.

  • doyla66
    doyla66 Thursday, 18 April 2013

    Get ya cast iron undies ready Banksters

    I cannot wait till the day these Banksters get a jail term. See them putting on there cast iron undies to protect themselves from what they been doing to us for years!

  • doyla66
    doyla66 Thursday, 18 April 2013

    Is anybody out there serious about integrity in business?
    It sounds like our regulators create the loopholes for banks to get away with fraud for the future also.

  • doyla66
    doyla66 Sunday, 21 April 2013

    'Integrity'in business???
    I think that went out the door when they appointed the regulators!

  • doyla66
    doyla66 Thursday, 18 April 2013

    What alot of bolony...you mean to tell me if the bank received an application showing applicant 1's income at $250,000 gross per month (that alone is an income of $3 million per annum) and applicant 2 showing $20,000+ you wouldnt question this. Why in the hell would we look to borrow $900,000+ on lo-doc.
    Funny about that because thats exactly what I saw on the bank tellers screen and now have a copy of that plus another 2 other copy of LAF (different version)showing applicant 1 & 2 incomes with different amounts, however with the exact or supposably the exact signatures of ours.
    But you see you didnt want us to see this thats why you hid our copy of our LAF from us. Now that this has been exposed I'm not just gonna go away, because someone has to pay with tampering our documents.
    So its about time that all you banksters put down your masks and surrender! You owe it to the decent Australian people who have been the honest parties here.

    From one angry hell of bank victim....Marianna J.

  • doyla66
    doyla66 Thursday, 18 April 2013

    It sounds like Jon Denovan and the mortgage industry is being challenged by changing mental gears. What a paradigm shift, from looking for borrower fraud to the possibility that the fraud could have been committed somewhere in the broker-bankster-lawyer-SPV team ie. Jon's "side".
    Welcome to our world, Jon.
    Surely it would be commonsense (good risk management practice) to put the brakes on with a short term employment plus high LVR application?
    Well it would be unless you've been disregarding this area of risk for years, believing that the borrower caused it.
    What a headache you are going to have, Jon, adjusting to this major shift in mindset!
    And Australians would be well advised to avoid the mortgage industry until all are off the bottle!
    Adjusting to change can be challenging and frightening - and shocking. Just ask any BFCSA member!
    Adjusting to actually doing what broker-bankster-lawyer-SPV were supposed to be doing in their jobs, engaging brain to do it and taking responsibility for the process and outcome .... and where does "Skippy" now fit on the Australian magic mortgage conveyor belt?
    Change can highlight the weaknesses in the previous dysfunctional system. Thankyou, Jon, for shedding a little more light on this industry - and how in the heck anyone approved the loan that I'm still carrying.
    Irresponsible drunks - it looked like it to me until I learned what really went on.
    I’m still punch drunk from the “treatment” by one of your company’s banking clients who accused me of what they did – fraud.
    And I can’t afford to drink.
    It would be almost mad-funny were it not for the major personal losses and suffering I've had to endure along the way on the magical mortgage mystery tour. It's just insane.
    So crack the vault open further, Jon Denovan - we could all use more light and clearly your industry could use a good clean up.
    It sounds like they've had bats in the mortgage belfry for an awfully long time......
    And I’m into the third year of legal paperwork hell and health problems while fighting to hang onto our home because of broker-lender negligence and one of Gaden’s notorious banking clients.
    Mortgage? No thanks!
    Angry and shocked? Definitely!

  • doyla66
    doyla66 Friday, 19 April 2013

    A great comment Lisa

  • doyla66
    doyla66 Friday, 19 April 2013

    I am in the middle of fighting the bank. They asked for my tax returns and received them even though it was a "lo doc" loan before I was approved a loan which showed I was not financial, in fact I was operating at a loss. They tied up my property so if I defaulted they took the lot. On top of that they lent me more than I asked for. Funny how they have lost my file though!! Little did they realise I have copies of all emails sent and received, and obtained purely by accident some internal documents. I am now waiting for the bank to acknowledge my claim and make me an offer that would put me back to where I would have been had they not been so greedy. ASIC has been in touch with me and FOS is involved but how long is a piece of string...Will keep you posted.

  • doyla66
    doyla66 Friday, 19 April 2013

    Lost file and you've got the emails ... good one :)
    Best of luck with your fight!

  • doyla66
    doyla66 Sunday, 21 April 2013

    Jean good thing you have kept some of the records best of luck with your fight.

  • doyla66
    doyla66 Thursday, 25 April 2013

    One of the job titles of J. Denovan is - The regulations and compliance for financial services!!...so compliance of WHAT?
    Perhaps I'm wrong here but isn't this supposed to mean that he ensures that all financial services, including the entire banking system, works in the best interest of the client. No, I think I am wrong! It obviously means that J. Denovan ensures that clients meet the demands of the banking system- as long as they are asset rich, income poor.... Since when did we allow Dinasaurs from Jurassic park to take over our entire legal, banking system with their cold-blooded merciless killing tactics.....and murder it is. This bank sham has murdered the rights of Australian families to live the life they deserve and have fought for.
    My father, as I'm sure many of the BFCSA members parents, sacrificed a huge chunk of his young life fighting in Europe and NewGuinea so that his grandchildren could live in a free country.....freedom of speech, freedom of living, and especially the freedom of an honest, client based financial, legal and governing system.......what happened to this ideal! Are we not subjected now to one of the greatest "peace-time" wars. Is this heinous white collar crime not equivalent to dropping a bomb on the future of families.
    Mateship, yes, mateship...it used to be the Australian word for empathy, caring, standing by people you know and care about.....but obviously mateship has new meaning to all crooks in the banking sector who cover their mates crimes and look after each other along with their mates in the legal and governing bodies...too bad about the death of "living" for the borrowers and clients. Interesting though, as with most crooks of low values, they are quick to turn on their "mates" when the truth comes out!....and it is coming out. That is a Universal Law....the truth always comes out!

  • doyla66
    doyla66 Saturday, 27 April 2013

    Great comment, Margaret, so true!
    May the troglodites and heartless thugs in the legalistic Banking community lose their power, feel the heat and shake with fear - at long last. Give them a 12 months - at least - of the treatment that they've put too many of us through. With education they might come to understand just one essential ingredient for a sane, caring, harmonious society: empathy.

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