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BFCSA
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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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Write up in the Brisbane Courier Mail

Posted by on in Fraudulent Loan Apps
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Banks cheated on home loans, inquiry told

 
 1
 

AUSTRALIAN banks have been accused of giving home loans to people who can't afford them, and doctoring the paperwork so the loans looked OK.

A consumer advocate has told a Senate inquiry into the banking sector this has serious implications for the federal government, which has invested billions of dollars in residential mortgage-backed securities (RMBS), which are repackaged home loans.

Banking and Finance Consumer Support Association president Denise Brailey said that in the past six weeks she had seen low-document or no-document loan applications from 400 people, and each one had been tampered with after being signed.

"Not one of them is a clean document," Mrs Brailey told the inquiry in Canberra on Wednesday.

In some cases, the loan application documentation showed someone on $40,000 a year was earning closer to $180,000.

 

She claimed this had occurred under the guidance provided by banks to brokers.

The government has invested just over $15 billion in the RMBS market in its attempt to restart securitisation in Australia and provide cheaper funding for the banking sector after the market effectively shut down because of the global financial crisis (GFC).

Mrs Brailey said international credit ratings agency Fitch Ratings had estimated that eight to 10 per cent of RMBS's comprised low-doc loans and some $2 billion of loans were obtained fraudulently.

"The government is holding tainted securities," she said.

"The government cannot be seen profiting from that fraud."

She said the Australian Securities and Investments Commission (ASIC) had failed to regulate the financial industry.

"ASIC did nothing before the GFC, nothing during the GFC, and refused by letters to me and to other people within our group, to do anything since the GFC," she said.

Ms Brailey called for a royal commission into the banking industry to examine the problem.

Loc-doc loans are mainly used by people who are self-employed and cannot provide the breadth of financial information held by those who work for someone else.

 
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Comments

  • doyla66
    doyla66 Wednesday, 08 August 2012

    ASIC have to awake up or close down!!! they seems not doing much,,,,

    I am glad that i e-mailed to Brisbane Courial Mail as well as other members did, good team worrk guys !!!

  • doyla66
    doyla66 Wednesday, 08 August 2012

    Well done guys that is exactly the kind of publicity we need to get in order to get some more public awareness. Lets hope the story appears in more newspapers as the week progresses.

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