BFCSA Blog

Despite our chats a decade ago. Peter Kell still does not get it..  The Broker follows the calculator process.  All the loans are constructed the same way.  The fraud is in the processing of the loan (inside the bank) via a service calculator!!!  The BIG point is Peter: why did you not charge the Banker who approved the unverified loan and failed to protect the consumer by rejecting the application? Simples!  This email address is being protected from spambots. You need JavaScript enabled to view it. http://www.brokernews.com.au/news/breaking-news/broker-pleads-guilty-to-fraud-200778.aspx Broker pleads guilty to fraud Share on facebook Share on twitter Share on linkedin Share on google_plusone_share   by Adam Smith | 26 May 2015   A NSW broker has pleaded guilty to fraud charges brought by ASIC.Shiv Prakash Sahay, a former AussieHome Loans broker, pleaded guilty in Downing Centre Local Court to making false statements, making false documents and using false documents. ASIC said Sahay made the statements and used the documents for loan applications with Bankwest and Suncorp totaling around $7m.Of the $7m in loans...

How can there be "no tolerance" promised when these toxic loan practices have escalated in past decade.  Ask Dr John Laker : "why is that so John?"  APRA and ASIC "tolerated" major crime in Banking Sector for years. Peter Kell uses the same throw away line: "we will not tolerate."  This email address is being protected from spambots. You need JavaScript enabled to view it. RBA spotlight on predatory lending Tuesday, 10 June 2014   |   James Mitchell 0 Comments     Facebook   0       Twitter   1       Google +   0             Linkedin   1 1inShare Australian lenders have been quick to defend non-conforming loans, as the RBA emphasises the danger of a rise in predatory lending. Last week the Reserve Bank warned lenders against dropping lending standards, stressing there will be no tolerance for predatory lending. RBA’s head of financial stability, Luci Ellis, emphasised the importance of regulation as a line of defence against an extreme easing...

We have hundreds of dodgy RAMS HOME LOAN files whereby the service calculator manufactured the fraudulent income.  Why is Broker/Agent punished by ASIC and not the LENDER.  Who is ASIC protecting?  ASIC has to be labelled the biggest protection racket in town.  Here is the problem.  Money Choice representatives were placing their loans via Major lenders and RAMS.  RAMS dealt with brokers directly.  Steven Kane now NAB exec, and director of FAST GROUP aggregated Money Choice deals.  Kane also was reported as contender for head of MIAA.  Any more info out there on these deals?  So if ASIC nailed RAMS for approval of fraudulent loan and for providing the dreaded service calculator that caused the fudging of incomes, surely that would stop this system issue dead in its tracks?  We kept warning Brokers you will carry the can.................  Peter KELL doesn't get it......yet again.................ITS THE BANKS STUPID..........................Then you say "this type...

http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/asic/asic052/~/media/Committees/Senate/committee/corporations_ctte/asic/asic_05_2/e04.ashx In late 2004 and early 2005, ASIC undertook a surveillance looking at whether advisers were complying with their obligations to disclose, in the Statement of Advice (SOA) given to clients, the costs, possible loss of benefits and other significant consequences of following advice to switch super funds.  During this surveillance, ASIC uncovered some cases where the interests of clients were harmed by poor advice. PURPOSE OF THIS REPORT The purpose of this report is twofold: •  to explain the methodology behind the surveillance; and •  to illustrate the results of the surveillance in simple language. PROJECT METHODOLOGY ASIC started surveillance on superannuation switching advice in December 2004 to assess how financial advisers were, at that time, complying with new legal obligations relating to advice to switch superannuation products. ASIC’s surveillance sample included 19 AFS licensees and 93 representatives of those licensees. Initially, ASIC reviewed 101 client files in which personal...

ASIC bumbles as spruikers rake in the dosh  June 5, 2004  http://www.smh.com.au/articles/2004/06/04/1086203629402.html?from=storylhs   By John Garnaut   A year ago, lawyer David Knott quietly told Treasurer Peter Costello he would step down as chairman of the Australian Securities and Investments Commission. Last month, Costello appointed accountant Jeff Lucy as Knott's permanent replacement.  The deputy chair, vacated by Lucy in December, is still open because Costello's preferred candidates don't want the job. Peter Kell, ASIC's respected consumer protection head, quit earlier this year. As did Pauline Vamos, who had implemented the financial services reform legislation. As did Peter Wood, the successful head of enforcement. They followed Sean Hughes, head of regulatory operations, who made for the exit late last year.  Others within ASIC's leadership are considering their futures. As some will tell you, ASIC no longer feels like a rewarding place to work. The Hansard records of this week's Senate Estimates provide...

Dear Peter, me again. ITS THE BANKS THE BANKS THE BANKS........................3% of brokers are rogues....we agreed on that one in 2003!!!  BUT you and I know 100% of LAFs have been inflated by Banker engineered service calculators that you never helped consumers get the copy of that page. Why? You even skipped over to Choice as CEO and never helped consumers with that bit of info whilst you were there.  Why is that Peter Kell?  Helping Bank mates perhaps? Why would you hide the calculator when Choice CEO and when Deputy Chair of ASIC?  Why?   Here is this gem from 2007 come back to haunt you and its good old Auntie ABC........................... Stephen, the Banks were approving all these loans. Banks cannot approve loans without checking and, then go on and blame the broker for the bank's approving the loan!!!!!  The Bankers Code deliberately forbids banks to lend unaffordable loans....

ASIC ARE FAILING TO NAIL A BANKER.  ASIC ARE FAILING TO WARN THE CONSUMERS.  Instead Kell is intent on blaming the Broker, blaming the borrower, creating sham and biased "studies" - the usual nonsense of course. Peter the more you tell porkies about Mortgage Bank Fraud / Toxic lending by Bankers the more you will be recorded and exposed by us.  You are inflaming the situation not solving it. Eleven years ago we discussed this and you agreed the clients deserve a copy of the LAF at point of signing....precisely the reason there needs to be a Royal Commission into all ASIC hierarchy / luminaries who are conflicted by the word "TRUTH." Its a widespread ASIC disease.  Here is another gem from your MOB: BORROWERS have been warned about a disturbing rise in fraud by mortgage brokers who are pushing up incomes and falsifying other information on the promise that it will...

ASIC cracks down on mortgage brokers NOT BANKS who approve loans....what is going on? Posted Thu 23 Jan 2014 The ABC reported "ASIC cracks down on Mortgage Brokers." "The corporate regulator is cracking down on fraud in the mortgage broking industry. The Australian Securities and Investments Commission says investigations into at least 20 brokers are underway. Mortgage brokers shop around for the best deals, usually for no charge, because they're paid a commission by the lender. But ASIC has accused some of falsifying loan applications."  READ THE TRANSCRIPT:  be prepared for nausea!   http://www.abc.net.au/news/2014-01-23/asic-cracks-down-on-mortgage-brokers/5215098 Yes embarrassingly for our Nation, ASIC is cracking down on Brokers BUT NO BANKS who approve the dirty loans.  Brokers are not qualified, nor licensed to approve loans.  Dirty Lending Policy starts with approvals of unaffordable mortgage loans to older Australians.  ASIC have given GREEN LIGHT to Banksters to continue with glee.....and immunity from charges being laid. Borrowers...

Mortgage Choice fined over false savings claims DateNovember 28, 2013 - 1:35PM Read later Clancy Yeates Banking reporter  SMH View more articles from Clancy Yeates Follow Clancy on Twitter Email Clancy Mortgage Choice has been fined for false advertising, after it wrongly claimed customers had saved an average of $10,000 over five years by refinancing their home loans. The Australian Securities and Investments Commission today said it had taken exception to television advertisements from 2012 that said customers had saved an average of ''$10,000 over five years.'' Rather than representing real savings by customers, the claim was based on calculations relating to a group of 300 refinancing customers over a six month period, ASIC said. ''No savings of $10,000 over five years had been achieved by any customer at the time of the advertisement,'' the watchdog said. Advertisement It fined the broker $30,600 for the infringements. The chief executive of Mortgage Choice, Michael...

ASIC IS HAVING A GO AT LAST:  Its has rapped Credit Union Australia over the knuckles re misleading ads.  Did ASIC even think to remedy this conduct by telling the borrowers who have been shafted that they can now extinguish the mortgages if they wish to?  I doubt it.  Wait for all the other tricks in these contracts.   So Lenders will continue to mislead consumers as its a very very lucrative market in the Low Doc Toxic Loans Industry.  Our members KNOW the Major Banks have all been using misleading material to rope customers into borrowing money they cannot afford and using "honeymoon" clauses which are hidden from view.   Consumers are not told to "take the blank contract home with you and get an independent lawyer to look for the "honeymoon trick" clause." As Peter Kell says: "he has been monitoring this "trend" for years.  We know Pete..........................................there is a...