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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: Radio 2UE George and Paul TIP: Get a copy of your Loan Application Form Now

Posted by on in ROYAL COMMISSION URGENT
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I have just been interviewed by George and Paul on 2UE.  They ask if the borrowers are exaggerating incomes..............?  My answer: that is the entire point....people are honest, they trust the banks, if pensioner is asked do you want a $300,000 loan to buy a second home, they will mostly say "oh no dear I cannot afford that, I am on a pension."  People are also aware that you can be jailed for lying to a Bank.  But what if the Banker lies to you?

Bankers have created a service calculator - a tool - a weapon and the managers and sellers use the calculator to key in the true income and the calculator will use tax advantages to "do the math" and out pops an exaggerated income "futuristic" figure.  This figure can only be used if the client of the bank is given a financial strategy used as a selling SPIEL.  Banks use agents to "spruik for ARIPs"  Asset Rich and Income Poor.  

Macquarie boasted in 2005 that ARIPs were a $50 billion market.  The Industry says it has blown out to $100 billion market.  Banks are making huge profits from Low Docs, or Liar Loans as they are known by in America.  The average loan to low income families are now reaching $600,000.

That translates to 200,000 people being affected by these inappropriate loans.

People are unaware that the 3 page document they sign three times for a loan application (known as a "LAF") is then added to 8 additional pages tacked on by the seller and known as the 11 page LAF.  NO-ONE in Australia has ever received a copy of that document at the point of signing and under Consumer Law you are entitled to anything you sign and /or contains your financial details.  The Service Calculator Form (states NOT TO BE SHOWN TO BORROWER) is attached to the LAF.  Banks send emails to the sellers and managers: "must be attached to LAF or we will not process your deal."  We have bank emails as evidence to show what sellers were being instructed, behind the scenes.  The additional pages and financial information calculated by the Service Calculator are added to the 40 page bundle, without the borrowers' knowledge or consent.  Brokers have called to say that in 2008 bank officers told them "we no longer do fully verified loans!"  That is a troubling statement indeed.

No wonder the Banks and RBA and APRA refused to release the figures of how many of these Low Doc loans have been sold vs how many FULL DOCS.  We need a Royal Commission into the Banks to find out how big is the Australian Low Doc market and what is the cost of the inevitable fallout as customers ask for the bank's copy LAFs.  The sellers have no idea that the banks have altered those documents with white out after the sellers send them to the bank for processing.  Now banks are gearing to send "processing" off shore.  Really?

BFCSA TIP:  If you have a Mortgage and there is no LAF in your file, then ring head office of your bank and demand a copy of this crucial 11 page document and the attached service calculator form and worksheet..........  Be prepared for a shock.   This email address is being protected from spambots. You need JavaScript enabled to view it.

Never sign a mortgage loan application without demanding your copy AT THE POINT OF SIGNING.  That will minimize the possibilities of fraud, forgery and imprudent lending.  Banks know if they hand out the copies, the entire scandal will be revealed.  CEO's are telling Parliament the documents are "missing!"  TIME FOR A ROYAL COMMISSION INTO BANKING.  Wide Terms of Reference.  Search for the truth regarding your loan whether Full Doc or Low Docs.  18% of the LAFs we have looked at were written up by bank managers - no broker involved yet same fraudulent exaggerated incomes.

Banks intended to blame the borrower or the sellers if this ever was discovered.  Too late gentlemen.....the genie is out of the bottle. This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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Guest Wednesday, 29 January 2020