BFCSA Blog

Meeting new ASIC guidelines tough for brokers, says solicitor Share on facebook Share on twitter Share on linkedin Share on google_plusone_share   by | 23 Apr 2015   Brokers could face challenges to meet ASIC’s responsible lending guidelines in the wake of The Cash Store case, says a leading solicitor.In November 2014, ASIC updated its guidance for credit licensees following a Federal Court decision that saw a lender taken to task over verifying clients’ living expenses. The regulator updated RG 209 to reflect the Federal Court's ruling in ASIC's case against The Cash Store.The ruling found that payday lender The Cash Store and loan funder Assistive Finance Australia had failed to comply with responsible lending obligations. According to ASIC, many of the companies’ clients were on low incomes or in receipt of Centrelink benefits.ASIC said the updates to RG 209 reflect the findings of the Federal Court, as well as to make...

The Industry & Regulatory Maggots involved and profiting from Mortgage Low Doc  Loan Fraud & dastardly Reverse Mortgages would try and have you believe the key issue is:  that borrowers and brokers are in fact altering 2.7 million loan application forms. The key issue according to our courts is NOT presenting an application form to the banks.  The key issue is THE APPROVAL. THE TRUTH IS: The Courts have already ruled the BANKERS are the culprits and THEY ARE responsible for APPROVING the dud documents. Even if the borrowers and/ or broker agents exaggerated the income on the LAFs, (which they did not in most cases), 2.7 million fraudulent LAFS were approved by Major Banks (85% of the market share of Low Docs). These Bankers approved these toxic loans aided by a computer approval process and a service calculator, geared to fudge incoem figures to increase VOLUME in lending to benefit the Banks.   AND THAT...