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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: WHAT IS A SUB PRIME MORTGAGE LOAN? How can YOU stop the Epidemic of Lender Fraud?

Posted by on in Consumers Fight Back
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WARNING TO ALL MORTGAGORS:  Check your files for FRAUD by LENDERS.  Diabolically, our Australian securities and Investment Commission ("ASIC") and APRA

Quite simple Credit providers’ documentation show the lenders engaged in predatory lending to boost sales.

According to ASIC the laws permit the borrowers to be deceived and mislead at every turn.  How insane is that by a regulatory6 agency of Government.  ASIC KNEW for over a decade:


  1. Borrowers were not told of the service calculator

  2. Borrowers are not told of the manipulations of income. 

  3. Borrowers are not advised of risks relating to asset lending,

  4. Borrowers are only told of glorified strategies that could not fail. 

  5. Borrowers are not entitled to receive copies of the LAF at point of signing

  6. Borrowers are not given copies of attachments yet are asked to sign to say they have read and fully understood the Loan Application…..when clearly they are prohibited from sighting the document.

  7. Borrowers are not telephoned to verify income and are not savvy on loan processing.


    Older borrowers, those with little education, those with disabilities are particularly vulnerable, yetaccording to ASIC in point 126, whether old laws and the new laws, consumers have been left unprotected by a lack of action against those responsible.  Essentially a large number of consumers have been left protected and in grave danger of becoming homeless.


    ASIC ought to have issued a preventative warning in relation to Mortgages given our knowledge of Sub-Prime Lending on a global basis:


    “INSIST ON A COPY OF EVERYTHING YOU SIGN and make sure you INITIAL EVERY PAGE and NUMBER THOSE PAGES in your own hand-writing.  Do not sign any contracts presented to you whether by Bank Manager or Broker until you have obtained the copy file of the wet ink original at the point of signing.  Make sure you write your NET INCOME on the front of the Loan Application Form.  Do not let others fill out any forms for you.”


    Since there are 18% FULL DOC TOXIC LOANS according to our surveys of members, all mortgage product preliminary forms, used for assessment purposes, should carry the above warnings.


    FRAUD IN LENDING is unlikely to take place if all alterations are initialled and copies are given to the client at the point of signing. 


    With respect, and based upon our experience in handling such cases, we suggest the following RECOMMENDATIONS be considered:


    If an Internal Service Calculator is used in assessment processing of mortgage loans, then a copy of the ISC be given to the borrower for authority, prior to acceptance of the loan.


    All pages of the Loan Application Form (“LAF”) and copies of all attachments be given to the borrower at point of signing.


    That’s risks of asset lending be fully explained prior to signing of LAF documents and the Borrower must be asked to write one page (own hand writing) understanding of what that risk is………..


    That any alterations to the LAF and all accompanied documentation be initialled by the borrower. Failure in this area will result in the Lender risking contract avoidance….the onus being on the lender.


    The use of white out renders the LAF and the loan contract invalid.  Penalties apply.


    ASIC to acknowledge, in line with current court decisions, that the Broker is the Agent of the Lender.


    If the WET INK original of the LAF is intended to be destroyed, the Lender must hand the document over to the Borrower within 7 days of the approval of the loan.


    All COSL CLOSED CASES be re-opened and properly investigated by Independent Investigation Team led by retired Judge from either Court of Appeal or higher.


    All FOS CLOSED CASES be re-opened and investigated by Independent Investigation Team led by retired Judge from either Court of Appeal or higher.


    Compensation LIMITS to be lifted on LOW DOCS due to the fact that there are NO LIMITS on loans to low income families.  The current $280,000 limit is inadequate due to the Fact that the average loan is now $600,000 and loss of homes are likely in such circumstances.


    Compensation claims must be reviewed and made retrospective.


    COSL to be amalgamated with FOS as soon as possible or; COSL to be removed as an EDR under ASIC licensing system.  Its serves no purpose for regulators to send consumers to places where no assistance can be given.


    That an independent research company is appointed to retrieve and analyse data, results and achievements from future investigations services, to:-


  1. Properly examine widespread nature of current improper lending

  2. As preventative measure for future lending conduct

  3. Safeguard these activities from ever permeating our banking and finance system in the future and deter and detect possible threat to the Australian economy.


    We do not accept ASIC’s continual assertions that there is no evidence of systemic issues in mortgage lending and banking.


    JOIN BFCSA TODAY:  JOIN THE STRUGGLE FOR JUSTICE OF FUTURE GENERATIONS  This email address is being protected from spambots. You need JavaScript enabled to view it.


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Guest Monday, 25 January 2021