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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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Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

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BFCSA: Tyrants of Finance Citibank & Bank of America forced to pay $15.7 Billion since 2007

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Citigroup to Pay $968 Million to Fannie Mae on Faulty Loans (BOA paid $11.7 billion)

By Hugh Son - Jul 1, 2013  Bloomberg New York

Citigroup Inc. (C), the third-largest U.S. bank by assets, agreed to pay Fannie Mae $968 million to settle claims tied to more than a decade’s worth of defective home loans sold to the taxpayer-backed mortgage firm.

The agreement includes 3.7 million mortgages originated between 2000 and 2012, the New York-based bank said today in a statement. While the payments were covered by existing reserves, the bank said it will set aside an additional $245 million in the second quarter. Results will be reported on July 15.

Citigroup Inc. joins firms including Bank of America Corp. in settling claims that they failed to check details such as borrowers' income when they created home loans. Photographer: Munshi Ahmed/Bloomberg

Citigroup joins firms including Bank of America Corp. in settling claims that they failed to check details such as borrowers’ income when they created home loans. Lenders typically promise to provide refunds if such flaws are later found in documents backing the mortgages.

Citigroup said the accord resolves “substantially all potential future repurchase claims.” It doesn’t release the bank from liability tied to servicing the loans. The agreement also doesn’t cover a group of fewer than 12,000 loans made from 2000 to 2012, the bank said.

“Today’s agreement resolves legacy repurchase issues, compensates taxpayers for losses, and allows Fannie Mae and Citi to move forward and strengthen our business relationship, Bradley Lerman, Fannie Mae’s general counsel, said in an e-mailed statement.

Citigroup had set aside $1.42 billion at the end of March to cover demands to buy back bad mortgages, according to an April 15 presentation. The bank didn’t say how much of those were tied to Fannie Mae.

Litigation and repurchase costs connected to defective mortgages have cost Citigroup more than $4 billion since 2007, according to data compiled by Bloomberg. Charlotte, North Carolina-based Bank of America, ranked second by assets, agreed to an $11.7 billion settlement with Fannie Mae in January.

To contact the reporter on this story: Hugh Son in New York at This email address is being protected from spambots. You need JavaScript enabled to view it." title="Send E-mail">This email address is being protected from spambots. You need JavaScript enabled to view it.

 

To contact the editor responsible for this story: Christine Harper at This email address is being protected from spambots. You need JavaScript enabled to view it." title="Send E-mail">This email address is being protected from spambots. You need JavaScript enabled to view it.

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  • doyla66
    doyla66 Tuesday, 02 July 2013

    Duped

    I certainly hope our authorities see this and understand the same outcome must happen here in Australia, for the dirty, scamming, systemic, and fraudulent tricks the bankssters and banks have been operating here as well.

  • doyla66
    doyla66 Tuesday, 02 July 2013

    This would've been done world wide. We are going to see our corrupt banks and their corrupt
    buddies put behind bars where they belong.

  • doyla66
    doyla66 Tuesday, 02 July 2013

    AOFM: Aust-Office-Financial-(mis)Management must compell bank$sters to “agree to resolve legacy repurchase issues, (to) compensates taxpayers for(pending) losses,

    Dirty-Aust-Ban$ters"heads-up", lenders typically promise to provide refunds if such flaws are later found in docs backing mortgages.

  • doyla66
    doyla66 Tuesday, 02 July 2013

    Aha! And do they put that promise in writing? Is it part of a contract with AOFM or ...?
    Does this mean investors have a faulty goods refund guarantee?
    Which would be covered by insurance?
    Has anyone found a "faulty goods" clause in their loan contract ever?
    What about the automatic cover for faulty goods under standard consumer legislation?
    No dice? Too late? Not covered? Does the act have exclusion clauses?
    Anyone tried that approach with FOS/COSL/ASIC/ACCC?

  • doyla66
    doyla66 Tuesday, 02 July 2013

    Lisa, every BCFSA member in a position to demonstrate clear LAF discrepancies known, ought to have been known, by their scum bank$ter can now cite ASIC Act (Commonwealth) -- "unconscionably conduct by bank$ter", within the meaning of s12CB of the Australian Securities and Investments Commission Act 2001 (Cth). ...bank$ter/lawyers frightened to death over this little gem, serious ramifications against all 30bank$ters involved in LAF fraud -- australia wide!!!

    Focus: Violet Home Loans Pty Ltd v Schmidt & Anor [2013] VSCA 56
    Services: Financial Services, Disputes & Litigation
    Industry Focus: Financial Services

    http://www.mondaq.com/australia/x/241420/Financial+Services/Financial+services+provider+guilty+of+unconscionable+conduct+turning+a+blind+eye+to+inconsistencies

    Court of Appeal (Victoria Supreme) Conclusion:---

    "This decision sends a -- warning -- to financial service providers to ensure its officers make reasonable enquiries with respect to -- any apparent inconsistencies -- in information provided in support of a loan application." ---re the original FAXED LAF.

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