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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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How many Low Doc Loans are unethical?

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Media Release: 24 August 2012

How many Low Doc Loans are unethical?

Attempts to deflect a Royal Commission into Australia's mortgage finance sector by the Mortgage and Finance Association of Australia are mistaken, hollow and shrill, the Australian Democrats said today.

MFAA CEO Phil Naylor rejected the Royal Commission call and claims there is very limited evidence of fraudulent dealings by brokers in a 17 August statement that only came to light yesterday.

ED:  Yes Naylor would say that...but he has yet to call me.....but like the banks who did not ring the borrowers to ask income details because they deliberately did not want to know yet continued to deny evidence!

"I don't know whether to be appalled or bemused by Mr Naylor's caricature of my remarks," Democrats Housing spokesperson David Collyer said today. "He has me saying all sorts of things."

"The evidence put before the Senate inquiry by Denise Brailey of the Banking and Finance Consumers Support Association is damning. She asserts widespread fraud in low-doc and no-doc loan applications render them misleading and unconscionable. The fraud involves inflating borrower incomes without their knowledge to make applications appear reasonable and repayments manageable.

"Australian banks have developed a loan application process involving brokers, bank business development managers and loan officers that misstates borrower finances yet is deniable by all.

"I have confirmed the accuracy of her shocking allegations with brokers who spoke to me on condition of anonymity.

Lenders have migrated their loan formulas to disregard borrower cash flow and rely solely on collateral as the primary guarantee of repayment. The expectation property will hold or increase its value has induced lenders to rely on what should be the second line of defense if borrower cash flow proves insufficient to service the loan. While this boosts the creation of large, long-lived bank assets (loans) it doesn't help people buy a house - it risks ensnaring them in debt beyond their earnings and work-life.

"Ethical people see this as a base failure of the rights and duties we owe each other.

This impasse is easily solved: require APRA to sample a selection of low/no doc loan applications from a number of banks and confirm with the borrower that asset and income details shown are correct and as initially represented by the borrower.

"If this gives the lie to Ms Brailey's denunciation of loan procedures, Mr Naylor can have his way and I will withdraw my call for a Royal Commission," Mr Collyer concluded.

Media contact: David Collyer             0413 248 193       This email address is being protected from spambots. You need JavaScript enabled to view it.
" style="color: #262626; font-family: Arial, sans-serif; font-size: 10pt;">This email address is being protected from spambots. You need JavaScript enabled to view it.

The original Democrats release is at:

The MFAA release is at:

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  • doyla66
    doyla66 Saturday, 25 August 2012

    A great piece of work Lisa. I think it's time to draft an email to Mr Collyer & thank him for his supportive stance.

  • doyla66
    doyla66 Saturday, 25 August 2012

    I agree, David Collyer is very clear about his position on this. He really gets the total picture, the politics of truth and so rational about the entire debate.

    "Ethical people see this as a base failure of the rights and duties we owe each other."

    I'm glad David mentioned the ethics. The Banker Broker model was set up to use the Law to protect the "perps" (or the players:D) but to defeat the Law as well. Regardless of the Law, our sense of right and wrong, of fair play and unfair practice ... this conduct is unAustralian. As more Australians hear and understand the factual evidence and gain greater empathy with those who have been through the shock of discovering "someone" tampered with their signed documents, the rage against the Banks will catch alight.
    From that point the government would have a hard time trying to justify not having a Royal Commission into Banking.

    EDITOR: David is an economist and understands ramifications for all of us as a society

  • doyla66
    doyla66 Sunday, 26 August 2012

    APRA invited to test BFCSA(inc)member assertions ASAP(ie:immediately) as precursor to ROYAL COMMISSION!!!

  • doyla66
    doyla66 Tuesday, 04 September 2012

    One thing is for sure, Great Loans vary from Great Lenders. Anyway, thank you for sharing such a GREAT information here. Been finding a good review on low doc loans lately so I might make these as my reference.

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