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BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

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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Subscribe to this list via RSS Blog posts tagged in loan serviceability fraud
Lenders, including the Major Banks dreamed up a dastardly weapon against consumers known as THE SERVICEABILITY CALCULATOR.   The clever little lenders, on salaries and bonuses of $4 million per year, wanted 20,000 "agents" to use their tools to fudge income figures.  How did they manage to find 20,000 dishonest people to become brokers and earn commissions from a  grand scale fraud?  Truth is the possibility of finding 20,000 dishonest people was a little ambitious.  No, this plan was subtle: "how to have 000's of Bank Officers (BDM's) and 000's of brokers, use the Service Calculator Tool, and allow the tool to create futuristic income, yet at the same time convince bank staff and its agencies that "all of the above was within the law." Brokers ask: "what is your income please?"  Little old lady ("ARIP") - that's bank jargon for Asset Rich Income Poor......the bank taught TARGET MARKET.....she quietly answers...
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  • doyla66
    doyla66 says #
    It seems to be that there is not one honest person in either the political arena or regulatory authority or for that matter the on
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ASIC could easily clear up the Australian Sub Prime Crisis with a very simple solution.  The Australian Securities and Investment Commission should immediately ban the use of internal service calculators.  Brokers tell us: "without the service calculator we would not know what income figures to place on the Loan Application Form after we obtain the signature." The Loan Service Calculators for Brokers are set at 1.47x (for Net Service Ratio or NSR).  If set lower then the banks can "pump up the volume" as suggested in our emails from banks to brokers.  We now know the NSR is set at 1.3x for risk "assessment" for insurance companies for LMI products.  It is set at 1.1x for Bank assessors.  All three calculators ware identical to look at but gearing is different. All ASIC has to do to save the next intended bank victim from financial ruin is to BAN THE SERVICE CALCULATOR....
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  • doyla66
    doyla66 says #
    There was a very good process prior to this stupid 'Skippy' [sorry Skip - you were a fun program to watch as a child & I did love
  • doyla66
    doyla66 says #
    and ASIC must seriously ensure that Lenders place every home loan borrower who should never have been approved for a loan in the f
  • doyla66
    doyla66 says #
    I agree, Change - and it seems we must keep ASIC, lenders and EDRs on track to ensure they do this.
  • doyla66
    doyla66 says #
    Totally agree, Denise. Simple solution to stopping major part of loan fraud. Incredible that lenders/credit providers are still u
  • doyla66
    doyla66 says #
    Mark Twain knew how 'the calculator' works:-"Get your (clients) facts first, then you (bank$ters) can distort them as you please."
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BFCSA Members have managed to make their presence felt.  As one member stated: "Can't believe Reserve Bank Australia have given the interest rate cut today and within the hour, the four Major Banks have passed on the FULL rate cut!   Normally it takes the banks a week or more to pass on 50%.   Bankers must be feeling the pressure!!!!!! Let's keep it up Members!!!!!" Yes indeed.  Banks fear a Royal Commission, lest all their grubby whopper Low Doc Mortgage Fraud secrets come oozing out from their vaults.  Now all we need is a few executives thrown across the boot of their cars and unceremoniously hand-cuffed.....all on the nightly news. The Banking Sector teach all brokers to use the bank engineered SERVICE CALCULATOR and entry is via the bank's own password.  Brokers then must type the correct income figures into the top left hand corner of the screen.  The Bankster calculator then delivers the "fudged figure" at the bottom...
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  • doyla66
    doyla66 says #
    From Greg Canavan in Melbourne: "--We'll make one more point about the interest rate issue before we move on. The banks immediatel
  • doyla66
    doyla66 says #
    Great advice, Denise. Good questions - Where are their super profits coming from? Comparison of successive annual statements shou
  • doyla66
    doyla66 says #
    Good advice. If every borrower does this, skippy will be obsolete in no time. Lending will be down further. Banks are passing on f
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  29 Jun 2012 - Good reading and video at: http://barnabyisright.com/2011/06/29/rba-says-our-banks-are-stuffed-in-other-words/#comments   Yesterday, RBA Assistant Governor Guy Debelle indulged in some MOPE.   Management Of Perceptions Economics.   Lies, deceit, and propaganda, in other words.   But for those with an ear to hear, and an inclination to check the “authorities’” claims, what he really did – unintentionally – was to give us a heads up.   That our Too Big To Fail banks (TBTF) are going to get bailed out, sooner rather than later.   Go grab a modest quantity of your favourite beverage, and settle in.  You are about to learn – in detail – why we cannot trust a word the banksters say.   Ready?   Now as expected, the mainstream press all lazily parrotted the “everything’s fine, move along, nothing to see here” headline that Mr Debelle wanted. Here’s a good example, from the nations’ “premier” newspaper:...
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  • doyla66
    doyla66 says #
    "why is the Australian taxpayer on the hook to backstop the banks?.." Why not change this scenario around in favour of the tax p
  • doyla66
    doyla66 says #
    Lisa, 'you're a woman after my own heart', but would you be employable to the press? Hmm, let me think......computer says, "no" r
  • doyla66
    doyla66 says #
    A big read Lisa. Keep them coming.
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  http://www.macrobusiness.com.au/2012/08/q2-rmbs-arrears-mixed/ Posted by Houses and Holes in Banks on August 31, 2012 | 3 comments -  "Where does this sit with Denise Braileys work, and 100000 people affected by dodgy low doc loan practises? Are banks hiding defaults?"  EDITOR:   Yes they certainly are and a point I raised in transcript.......APRA reacted next day and asked banks for updates!!!  More lies!  Government needs urgent AUDIT into FULL DOCS, LO DOCS AND NO DOCS......     From Moodys:   Sydney, August 31, 2012 — The prime 30-plus arrears rate remained steady in the second quarter at 1.66% in June, and unchanged from March. In addition, the rate has not moved much from the same period last year when it was at 1.67%. While the overall index is at 1.66%, considerable variation exists within the market. Historically, major bank deals have performed better than those of non-major bank ADIs (i.e. other ADIs), which have, in turn, outperformed non-ADIs....
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  • doyla66
    doyla66 says #
    I can see the heads of all the regulators being moved on - the sooner the better! They presided over the cover up. Australians don
  • Denise
    Denise says #
    Like everything else in this sordid tale of bankster pillaging, the figures have been hidden or skewed. I mentioned in Parliament
  • doyla66
    doyla66 says #
    Is there any way of getting stats on the homes repossessed, sold under duress, sold out of fear of default and banks etc? ie. the
  • doyla66
    doyla66 says #
    of course its much worse than they reveal but dont forget to take into consideration all the homes they have already repossessed a
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  This is an interesting historical article on perceptions about Australian RMBS. It certainly pays to be informed about risk in the marketplace.   by Hardeep Dhillon     In terms of collateral, the Australian residential mortgage-backed securities market has performed better than its peers for several years, thanks mainly to its blemishless default history. After a post-crisis slump, a revival of domestic issuance is under way; but it could take much longer for cross-border transactions to follow.   The peak came in February 2007 with the A$7 billion ($5.5 billion at time of issue) multi-currency transaction by Commonwealth Bank of Australia, via its Medallion programme. As well as being the largest RMBS by an Aussie borrower, the deal set a new pricing benchmark, with the most senior US dollar-denominated notes offering a pick-up of just 4 basis points over Libor. Around that time, spreads on deals from the three other banks...
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  • doyla66
    doyla66 says #
    This bank has publicly issued over $9.5 billion of RMBS since 2003. Through our RMBS program we currently manage the collections
  • doyla66
    doyla66 says #
    "Australian Banks have full recourse to the borrowers" yep they sure do,they can take our houses,this is unconscionable,and they h
  • doyla66
    doyla66 says #
    I'm looking forward to seeing the list. There is no excuse for politicians who might think they can avoid the issue. There are c
  • Denise
    Denise says #
    Brilliant find LISA Yes we are all receiving an amazing education over all these banking products and skull-duggery. We are also
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This is simply brilliant! - a "creative" solution to bank angst - in particular, NAB angst. Bankslayer has done it again :)   This is my how to for creative visualization - I imagine the building is the headquarters of the National Australia Bank being demolished after they've gone bankrupt. How did the nab go bankrupt? Well, after months of campaigning politicians finally did the right thing and there was a Royal Commission into Bank Malpractice. Following even more months of evidence including that of victims of the bank such as Ozzie Inak and Rosie Cornell as well as numerous expert witnesses the nab was stripped of it's license to trade as a bank. Unable to be a fully functioning bank their shareholders abandoned them.  After considerable whingeing the nab was declared bankrupt. See how easy creative visualization is? Help me out - if you're an Aussie demand your Federal MP...
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  • doyla66
    doyla66 says #
    I think I must be more callous than you. I imagine all I have been associated with throughout this dispicable loan being homeless
  • doyla66
    doyla66 says #
    just testing - trying to learn how to blog Editor: hey u made it! Congrats Robyn
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Do you have a home loan written after July 2009? Are the old loan practices still going on? Any sign of change or improvement?   David's comment about loans written after the NCCP prompted my putting up this post. Information below on what was supposed to happen ...  I'm really looking forward to your comments. Lisa xx       July 20, 2009 National Credit Code and UCCC comparison The National Credit Code (NCC) is contained in Schedule 1 to the National Consumer Credit Protection Bill 2009. The NCC will replace the Uniform Consumer Credit Code, with modifications. Here is a list of changes (Note this is different from the changes in the exposure draft bill and does not include the registration and licensing changes): Scope: Code applies as in UCCC but has been extended to cover credit provided for the purchase, renovation or improvement of a residential property for investment...
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  • doyla66
    doyla66 says #
    I had similar statements made about our position too. I got 2 legal opinions before my dud ex decided who we were to go to & both
  • doyla66
    doyla66 says #
    Hi Lisa - I may have representation - but it does not stop me from wanting to be a voice for others in this area. Please look at m
  • doyla66
    doyla66 says #
    Yes. I do. I really wish I could say more about my case - but it is with the Barrister and solicitor. I have some REAL head spinne
  • doyla66
    doyla66 says #
    Hi JJ, I hear your frustration. "Coded" into silence. If you can, save yourself, anyway you can. Been there, with the legal silen
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Posted by on in BANKSTERS
Denise says we need the services of a hand writing expert......most LAFs in her experience and a recent survey have revealed three people's hand-writing on the documents:  the Broker and two others.  She has the proof that one of these is the credit assessor.....identified via the notes. Lenders don't bother checking loan application income or in fact any detail other than a  credit check Surely lenders can tell from the Loan Application Form who committed the Fraud? Message to Bankers: check the hand writing and compare with that of your staff...but of course you know that as higher up Managers taught you...."you can even resurrect credit impaired and rejected loans....make the deal fit by maximising loan amounts borrowed."    ...
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  • doyla66
    doyla66 says #
    Interesting thanks for sharing a good find.
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Media Release: 24 August 2012How 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...
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  • doyla66
    doyla66 says #
    One thing is for sure, Great Loans vary from Great Lenders. Anyway, thank you for sharing such a GREAT information here. Been find
  • doyla66
    doyla66 says #
    APRA invited to test BFCSA(inc)member assertions ASAP(ie:immediately) as precursor to ROYAL COMMISSION!!!
  • doyla66
    doyla66 says #
    I agree, David Collyer is very clear about his position on this. He really gets the total picture, the politics of truth and so ra
  • doyla66
    doyla66 says #
    A great piece of work Lisa. I think it's time to draft an email to Mr Collyer & thank him for his supportive stance.
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From MORTGAGE MIX - Thankyou to Tim Neary for this good article on the Royal Commission and Lo Doc Sub Prime Debate.    17 Aug 2012 Macrobusiness published an interesting article recently suggesting Australia’s claim to having a conservative (and safe) banking sector have ‘taken a bath’ recently, as evidence emerges of our own low doc driven sub-prime lending scandal.A video link from the article suggests in the run up to the GFC, Australian banks and other home-grown lenders abused the system of low doc loans; designed for small businesses but sold “by the thousands” to pensioners, single mums and people on welfare.It might sound shocking, but opinion on the subject is firmly divided.In response to the subprime scandal reference one reader left this pointed comment: “Sub-prime???? Pffffffft you guys are so 2007…”One of the industry’s leading low doc aficionados, Pepper’s Mario Rehayem, is also thumbing his nose at the notion. He has been ever...
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  • doyla66
    doyla66 says #
    Re; las laf: "claw back" provisions? some form of undertaking the loan book is purportedly "clean"??? Back room deals going on her
  • doyla66
    doyla66 says #
    EXACTLY Last-Laf "Loans prior to 2008 that were often 'fixed' by brokers and other agents, through the commission of forgery on th
  • doyla66
    doyla66 says #
    Regarding the book, 'Inside Job', Matt Damon made it into an excellent documentary as well, if people are interested. Some of the
  • doyla66
    doyla66 says #
    It's interesting to hear that Pepper's chap has thumbed his nose at the problem in consideration of the fact that his company purc
  • Denise
    Denise says #
    The "Inside Job" was a book which had a great impact on my in 1993 re white collar crime and the Savings and Loans Scandal in Amer
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It's good to see Australian Broker Online tackling the big concern sending shivers through the entire Industry. Thankyou to their writers, editor and the brokers for providing valuable feedback and information about what was going on from their perspective. Here are the links to the articles and comments related to the BFCSA allegations of Lo Doc Loan Fraud.   Poll: Did banks encourage fraud during boom times? A WA broker – herself facing fraud charges – has accused the nation’s lenders of being complicit, by encouraging brokers to commit fraud to get low-doc loans approved during credit boom times. Australian Broker is asking our readers to cast their vote. Did you see evidence of banks encouraging fraud? Yes or no? Have your say here! http://www.brokernews.com.au/article/poll-did-banks-encourage-fraud-during-boom-times-142522.aspx   TV: 'Overkill' evident in bank low-doc backdown Brokers have labeled bank reticence to write low-docs as an example of a knee-jerk reaction in an exclusive...
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  • doyla66
    doyla66 says #
    I emailed the editor of Broker news last night with a summary of our story..
  • doyla66
    doyla66 says #
    Thanks for giving me the lead for this post, Arree. I wonder what Broker News would think now. I would also like Phil Naylor to
  • doyla66
    doyla66 says #
    Or more like Gladstone the dog ...
  • doyla66
    doyla66 says #
    It follows logically that every Lo Doc and No Doc loan in the world is potentially affected the same way. It also follows, logica
  • doyla66
    doyla66 says #
    Absolutely! The banks have blood all over their hands! They know what they do and they don't care. They set it up so that the br
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As further insight into "A Void Contract" posting  Did you keep a copy of the income, assets and expenses/liabilities that you wrote on your original doc?  If you did, go to your bank's website and find the 'calculators' they provide.  Put those numbers into the 'borrowing power calculator' for a rough guide of what you should have been able to borrow. Or if you don't have those docs, go back to your Group Certificates of the year that you applied for the loan.  At least you can get an idea of how great the falsification is.  I'm sure you will get a BIG shock of how much you really were able to borrow as a comparison to what you were 'lent'.   If you do have a copy of your LAF, take the 'Loan Serviceability Assessment' doc and take the summary numbers they have used to approve your loan and put...
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  • doyla66
    doyla66 says #
    It seems to me that it is so deeply entrenched within the banking & financial sectors that only a full Royal Commission with very
  • doyla66
    doyla66 says #
    So true!
  • doyla66
    doyla66 says #
    Thank you for the information, STM. Tonto has gone but I'll find another calculator to see if that does the trick. I've got an
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