MY COMMENT  This email address is being protected from spambots. You need JavaScript enabled to view it.  APRA has ordered LAZY/CORRUPT ASIC to take a "Bo Peep at TOXIC LENDING!"

The moment of truth is bubbling (at last) to the surface.  BFCSA has been gathering victims of unaffordable loans together for years and complaining to three Chairmen of ASIC re these Interest Only 30 year loans sold to pensioner and low income families.  BFCSA have, with assistance from an economist and editor, been explaining the impact for the banking sector to four Inquiries this year.  ASIC read my February report and evidence in chief in Senate Inquiry into ASIC.  Medcraft in denial.  Now after Sept figures they claim they want to give surveillance next year?  Where is the Consumer Protection?  ASIC is conflicted in protecting big end of town with the interests of Mums and Dads left in a closed file - for years. 

BFCSA subs to Murray, Fawcett and recently Dastyari Inquiries explain in detail the sellers of product are not to blame. Why is the Senate agreeing to all these Inquiries and even the Treasurer, if there is no problem.  Its massive.  The Engineers of these dastardly products marketed to ARIPs by Lenders (to asset rich income poor people with own home no debt) was a lender created marketing concept with spiel attached to the FP industry. 

Its the PRODUCT that is toxic and intentionally so.  Why was this not reported/investigated by the so called peak industry bodies?  In their evidence they also denied and fell into line with ASIC. Remember they all blamed the brokers and planners.  I warned you all. Read the transcript. Why was it a grass roots consumer body that had to do 15 years work on this Lender tragedy to ordinary Australians?  Yes these were supposed to be a facility (aka old 12 mth bridging loan) for commercial loans and why disbelievers in the finance system and others had no idea what was being sold. 

True Figure is higher than APRA 42%.  All loans unverified.  Sellers did not approve loans - lenders had duty to reject.  Its called greed and profits and its called sub prime lending - or slime lending if you prefer.  Houston we have a problem.  Now ASIC has been dragged screaming and kicking into the spotlight......by Consumers.  The Government aim now is to contain the information.  2000 files reveal the concept.  Consumers will say truth at last!  At Christmas spare a thought for the old folk being thrown out into the streets because of 17 big name lenders

Regulators crack down on interest-only loans

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by Julia Corderoy | 10 Dec 2014
 
Regulators have set their sights on interest-only loans after interest-only loans as a percentage of new housing loan approvals reached a new high of 42.5% in the September 2014 quarter.

Through the Council of Financial Regulators, ASIC, APRA, the Reserve Bank and the Treasury are working together to monitor, assess and respond to risks in the housing market. The review follows concerns by regulators about higher-risk lending, following strong house price growth in Sydney and Melbourne.

ASIC has announced they will now begin an investigation into the provision of interest-only loans. The probe will look at the conduct of banks, including the big four, and non-bank lenders to assess how they are complying with important consumer protection laws, including their responsible lending obligations.

“While house prices have been experiencing growth in many parts of Australia, it remains critical that lenders are not putting consumers into unsuitable loans that could see them end up with unsustainable levels of debt,” ASIC Deputy Chairman Peter Kell said.

“Compliance with responsible lending laws is a key focus for ASIC. If our review identifies lenders’ conduct has fallen short, we will take appropriate enforcement action.”