BFCSA Blog

Loan serviceability buffers questioned Friday, 12 September 2014 James Mitchell http://www.mortgagebusiness.com.au/breaking-news/7640-westpac-s-loan-serviceability-buffer-questioned   A new report has raised concerns that the loan serviceability buffers of Australian banks are too low for borrowers to withstand rate rises.  Interest rate buffers are used to assess a borrower’s ability to meet mortgage repayments in the event of a rate rise. The JP Morgan Australian Mortgage Industry report singled out Westpac as an example of a lender with a buffer rate of 6.8 per cent, just under two per cent above the current rate of repayment on a standard mortgage.  “That serviceability buffer is actually around the 10-year average mortgage rate,” JP Morgan banking analyst Scott Manning said. “If you are assessing buffer ability on averages, rather than stressed scenarios, we question whether that is sufficient and we think maybe the three per cent buffer that the UK is proposing actually makes a bit of sense,”...

That's not a debt disaster  -  This IS a debt disaster:  Joe and Tony's big con 11 October 2014 Alan Austin http://www.independentaustralia.net/politics/politics-display/thats-not-a-debt-disaster--this-is-a-debt-disaster-joe--tonys-big-con,6984 Alan Austin presents another exclusive report the mainstream media will not touch — Australia’s rapidly escalating borrowings since Abbott and Hockey came to office promising to end ‘Labor’s debt disaster’. AUSTRALIA’S DEBT since Joe Hockey took charge of the nation’s finances has increased dramatically.  The rate of expansion shows no signs of slowing.  Monthly finance figures for July and August were quietly released yesterday — late on Friday night, several weeks late, after seemingly being sat on by Cormann for at least a week*.  They show the Abbott Government has achieved precisely the opposite of its solemn pre-election undertaking to bring about   ‘… a reduction of $30 billion in net debt.’ In July and August alone – two months for which it is impossible for PM Tony Abbott to blame...

How can any first home buyer afford to save $164,000 for a home deposit?      Property forecast: prices to rise by 19% with deposits to hit $164,000   By Audrey Bertin | 14 November 2013   http://www.whistleout.com.au/HomeLoans/News/Property-forecast-prices-to-rise-by-19-per-cent-while-deposit-remains-high   Sydney’s residential market is in fast recovery, with forecast by property forecaster BIS Shrapnel predicting housing prices in Sydney to rise by 19 per cent throughout the next three years. Adding up to this increase in budget for home buyers is the deposit, requiring more savings as prices climb – which prevents many first-home buyers from making the leap. The median price for Sydney’s houses is $690,430 at the moment, and it is expected to extend to $820,000 by June 2016. Robert Mellor, managing director of BIS Shrapnel reported that the main factors driving this price increase are a strong demand from population and overseas immigration growth and an under supply of...

http://www.theage.com.au/business/banking-and-finance/penske-file-exposed-macquarie-groups-cheat-sheet-made-public-20140919-10j8yu.html Penske File exposed: Macquarie Group's cheat sheet made public Banking and FinanceBusiness Date September 20, 2014 Adele Ferguson and Ben Butler It is the cheat sheet at the centre of the Macquarie Private Wealth scandal that the millionaires' factory and the corporate regulator, the Australian Securities and Investments Commission, refuses to confirm or deny exists.  Fairfax Media has obtained a copy of the Penske File, named after the folder of documents on which the Seinfeld character George Costanza pretends to work. The Macquarie folder contained answers to exams its advisers are required to take annually in order to keep their professional accreditation up to date. Fairfax Media can reveal a version of the controversial Penske File has been barcoded and scanned into ASIC's database. The file includes more than 30 cheat sheets showing the answers to questions on topics ranging from agribusiness schemes and margin loans to advising clients whose...

Get involved: Why? as one petitioner explains To prevent a banking collapse here in Australia because this would have a devastating effect on the population.   The future of our economy is dependent upon a Royal Commission.  MR DAVID MURRAY must recommend  ROYAL COMMISSION INTO BANKS AND ALL ASSOCIATED SUBSIDIARIES in the PROPERTY, DEVELOPMENT SCHEMES running PONZI STRUCTURES connected to Banking - wide Terms of Reference. THIS IS DOABLE  cut and paste link and sign in.  Then send to every community group you know of. Read the 1650 REASONS OF OTHERS Both partners to sign in - then send to 100 people and you will see the momentum building as other recognized organisations and groups come on board. This is the link and thank you for support as this is sorely needed and long overdue  https://www.change.org/p/mr-david-murray-chairman-of-the-financial-system-inquiry-recommend-an-urgent-royal-commission-into-australian-banks-australian-non-banks-collapsed-companies-the-regulators-asic-apra-and-all-subsidiaries-and-joint-partners Petitioning Mr David Murray Chairman of the Financial System Inquiry  Recommend an urgent ROYAL COMMISSION into...

Peter Kell, Deputy Chair of ASIC,  Dear Pete, you cannot continue the 16 year old crappy suggestion you are doing a CRACK DOWN on crooks.  You can no longer look at an advertisement and hand out a parking ticket to a Major Bank. Oxford Dictionary: CRACKDOWN A series of severe measures to restrict undesirable or illegal people or behaviour: a crackdown on white collar crime.    Pete a CRACKDOWN it does not suggest a parking fine for an ad!!!!  But we should have a CRACKDOWN on dud regulators!!! A CRACKDOWN IS WHERE YOU LOOK AT CONSUMER LOSSES AND RUINED LIVES, instruct the AFP, ROUND UP THE BANKERS, THROW THEM OVER THE BONNET OF THEIR FANCY CARS, HANDCUFF THEM AND HEAD OVER TO THE CDDP.    I explained this to you in our 2004 meeting in the Melbourne ZOO, remember?  Let's get a move on!  Its not about saying "oops adv is a tincy wincy bit misleading.  Its looking...

http://www.smh.com.au/business/markets-live/markets-live-insane-jobs-data-20140911-3f9hp.html Markets Live: 'Insane' jobs data Date September 11, 2014 The sharemarket fell on Thursday, despite strong jobs data, as weaker than forecast Chinese inflation added to jitters about the tumbling value of Australia’s biggest export, iron ore.  The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each dropped 0.5 per cent, on Thursday to 5546.1 points and 5546.9 points respectively. The Australian dollar rose on surprisingly strong jobs data, but equities were not supported. Taking their opening cues from United States equity markets, which moved modestly higher on Wednesday, local shares traded higher briefly in the morning.  The market eased ahead of the major economic data releases of the day, and then continued to decline despite official jobs data for August that were better than expected. Australian Bureau of Statistics data showed the jobless rate dropped to 6.1 per cent last month, coming off a 12-year high of...

The Australian Parliament has listened to over a decade of excuses for consistent neglect coming from ASIC Chairmen.  ASIC became a boys club almost instantly for one age old reason: CONFLICT of INTEREST. The Australian Securities and Investment Commission is attempting to serve two masters:  Banking and Finance Industry and the interests of consumer protection.  IT has failed.  ASIC continually suggests it has not enough funds and not enough powers.  Senator Coonan told the public in 2005: "ASIC has plenty of powers."  WE agree.  ASIC generates $800 million a year in fees and Treasury feeds back $400 million per annum.  Consumers have had "enough" of ASIC excuses when billions of dollars in life savings from retirees and lost homes via Low Doc Liar Loans have run rampant. Australians losing their homes and savings is of no help to the economy and its time for Parliamentarians to wake up.  Consumers have begged...

FOS Chief Tregillis (ex ASIC) can expect a  letter from us shortly re its ex banker Ombudsmen and its current seconded Banker Experts.  Its not corrupt? Judge for yourselves.  Even Brokers are getting "done like a dinner." http://www.abc.net.au/news/2014-09-04/settlement-day-disasters/5721708 Watch The Business News 24 on ABC 8.30PM EST  ROYAL COMMISSION IS URGENT This email address is being protected from spambots. You need JavaScript enabled to view it.   From a Reader/Member:  FOS LOVE CLOSING FILES: I had made a maladministration/imprudent lending complaint via FOS and FOS closed my file.  The bank wrote a sob story to FOS telling them that they should be allowed to start legal proceedings against me while the complaint was being decided as they had already suffered a massive loss.  FOS didn't even make the bank substantiate their claim and granted the bank's request without giving me a right of reply.  It seems the banks can make any claims they like and FOS just accepts whatever they say as the truth, whereas...

Future homelessness will rival the great depression unless we collectively call for ROYAL COMMISSION NOW. You can now start to see futuristic stats emerging.............................. Casualty LIST of those affected by LACK OF CLEAN UP and lack of response from the Australian Federal Government:   Mortgage holders who were given buffer monies to mask UNAFFORDABILITY of sub prime Property owners as market bubble bursts Sellers of products as downturn bites Shareholders who trust the banking system Depositors who trust the Banks Small businesses who rely on small truthful loans Governments who ignore the elephant in the room High wealth aussies re bail out bank strategies And all the flow on effects: jobs, health, divorces, suicides and homelessness costing centrelink....massive! AND, THE WINNERS ARE....CEO'S of Major Lenders paid up to $100 million for five years carnage......................all criminal of course.  Where is the JUSTICE? CLEAN UP TIME and recognition that SELF REGULATION only works...

Dear Mr Thorburn Chief Executive Officer  National Australia Bank SPENCERS STORY on ACA Weds 28th Aug     http://aca.ninemsn.com.au/article/8897074/evicted-at-their-lowest-point Spencer needs some good news right now.  At 75 he still runs his business and earns around $75 a day.  Four years ago he owned his own home worth $500,000.  He asked for $105,000 to prop up vendor finance for his buyer then moved to slightly cheaper home. In four short years his original position has changed to one of owing NAB $500,000.  Your bank is saying they will allow Spencer and his wife to stay an extra one month in his home and has a reprieve from EVICTION. However you have inherited this problem from Cameron Clyne who recently sailed into the sunset with $42 million in bonuses.  Plus around $35 million for five years work stitching up elderly clients of NAB with INTEREST ONLY UNAFFORDABLE  LOANS.  Moody's tell us these IOU loans represent...

http://www.brokernews.com.au/news/breaking-news/newsletter-191172.aspx   BREAKING: Bank announces commission incentive       inShare by Adam Smith | 27 Aug 2014   A non-major has announced commission increases for its broker network.Bankwest has announced a new trail commission incentive for deals below 75% LVR. For a three month period, the lender will pay bonus trail while still paying 70bps upfront trail.The initiative sees the bank instituting year one trail of 5bps for loans up to $350,000, 10 bps for loans up to $500,000 and 15 bps for loans up above $500,000.“With rates as low as 4.74% p.a. (comparison rate 5.13% p.a.) for a loan amount over $750,000 and less than 80% LVR on our Complete Home Loan Package, Bankwest is growing its share of lower LVR business. Our Broker partners have been talking to me about the value of Year 1 trail, so I'm delighted we are able use this trial to test their appetite. The trial...

  Unverified Lending since 2008 and Veda speaks of "Fraud Checks."  Not in our experience in dealing with banks - the fraud is internal to the banks.  Without Veda seeing the supporting docs of an application how can they verify if fraud or not? Consumers are waking up.  Even David Murray is warning what comes up must come down.  There has been widespread approval of unaffordable loans and the consumers had no idea of the frauds and were forced by packaging to take credit cards they had said NO to.  Banks said you must take them as part of the pack - no choice - cannot separate.  Breaches of TPA all over the place. Nearly $2bn of credit apps red-flagged for fraud       inShare by Adam Smith | 25 Aug 2014   Nearly $2bn of credit applications were red-flagged as potential fraud in the last financial year.New research from Veda has shown $1.9bn in...