BFCSA Blog

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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ANZ Bank has stepped up its commitment to mortgage brokers by becoming the first bank to offer brokers extensive ongoing training programs. Thursday, December 5th 2002, 10:10PM by Jenny Ruth http://www.goodreturns.co.nz/article/976487856/anz-trains-brokers.html The bank has begun offering four to five hour training seminars to brokers in different centres around the country with the aim of both improving its own image with the broker community and as its contribution towards lifting industry standards. It is also about to launch a broker-dedicated training web site that will include an online training manual. ANZ head of broker distribution Brian Robb says that while some product specific information is covered, other areas such as sales skills, how to package a customer’s loan better and the wider duties and responsibilities of brokers will be covered. Areas such as legislation relevant to brokers and what they should disclose to customers are also part of the program, he says.  While...
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What went wrong in Australia?   December 2007 http://www.chriswrightmedia.com/americansecu-dec07-what-went-wrong-in-australia/   In April, Stuart Fowler was having a conversation with American Securitization about the impact of sub-prime on his business. The co-founder of Basis Capital, a highly successful Australian absolute return manager with around US$3 billion under management and advice in credit instruments, was recalling that his fund had suffered its first month of losses in its more than three year history that February, thanks to the negative publicity and illiquidity in credit markets caused by sub-prime. But since then, he reported, the manager had made it all back again and now appeared to be well-positioned. But within months of our conversation, Basis was in trouble; by August one of its two main funds, a structured credit vehicle called the Yield Alpha Fund, was in liquidiation, and the other had lost half its value. Investors in the yield fund have been told to expect...
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The proof of the pudding I assume.........all of them so “non-transparent” re motives and interpretations “to suit” it’s mind boggling.......... Disputes in the Financial Ombudsman Service and the Statute of Limitations http://www.ahernslawyers.com.au/latest-news/disputes-in-the-financial-ombudsman-service-and-the-statute-of-limitations/   Friday, June 21, 2013   Almost 5 years has passed since ASIC was first alerted to rogue financial advisors of the Commonwealth Bank of Australia. Seven financial advisors were formally removed from the industry for engaging in misconduct by forging clients signatures, creating unauthorised investment accounts and overcharging fees resulting in over 700 clients suffered loss totalling millions of dollars.   If you have received inappropriate advice from a financial services provider, such as your financial planner or advisor, you should be aware of the time limit you have to bring legal proceedings should negotiations with the financial services provider fall through or if the Financial Ombudsman Service is dealing with the dispute.   The Financial Ombudsman Service...
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http://kangaroocourtofaustralia.com/2015/04/23/ian-narev-ceo-commonwealth-bank-shows-his-contempt-for-the-australian-senate-and-his-customers/ The banker’s scandalous and obvious plan on compensation The strategy by the banks is very obvious and an old routine. Drag out the compensation payment scheme as long as possible so people get tired or desperate waiting for their money. That way the customer accepts a reduced offer from the bank and the bank saves millions. The banks would also be aware that some customers will die before they get compensation so they will have to pay them nothing. The bank’s delaying tactics on compensation is not accidental and it is clearly coordinated between them to some degree. Maybe the ACCC should investigate for breaches of the Trade Practices Act. Why Australian Banks lie and deceive the customers The main reason banks lie and deceive is because they can as no one stops them and their competitors do. The banks think if they stop their sales staff from pushing and overstepping the boundaries...
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Spruiking Securities Journalists spruiking investment funds is never a good idea as this story about Angas Securities shows. http://www.abc.net.au/mediawatch/transcripts/s4348316.htm   And while we’re on the subject of interest rates, here’s a much more important story. It’s about high-yielding investments with Angas Securities, Australia’s largest shadow bank, which have been enthusiastically endorsed for many years by the West Australian’s former editor Paul Murray: PAUL MURRAY: As a journalist I scrutinise everything and working with Angas Securities is no exception.— Channel Nine Sydney, Angas Securities Ad, 15th October, 2014PAUL MURRAY: As a journalist I scrutinise everything and working with Angas Securities is no exception. Their seven per cent rate of return on investments fixed for 12 months is the real deal. Fixed interest investments are Angas Securities’ specialty. They’ve been doing it for years. Seven per cent per annum, fixed for 12 months, with interest paid monthly or on maturity. Call or visit their website...
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US banks said to hold $10tn of ‘risky’ trades Barney Jopson in Washington and Ben McLannahan in New York 10 November 2015 http://www.ft.com/intl/cms/s/0/b8076642-87d3-11e5-9f8c-a8d619fa707c.html#axzz3r9txprFB     The repeal of part of the Dodd-Frank financial reforms has left big US banks holding $10tn of “risky” derivatives trades on their books, according to an investigation by Democrats.   Senator Elizabeth Warren, a liberal Wall Street foe, said the repeal — which sparked a firestorm when it was slipped into a budget bill in December 2014 — had left federally insured banks exposed to dangerous swaps trades.   The rollback of the relevant rule, which followed almost no congressional debate, sparked stinging criticism of Wall Street and cemented perceptions of the pernicious influence of bank lobbyists on Capitol Hill.   The rule would have required banks to “push out” swaps trades to entities that are not insured with taxpayer funds.   But on Tuesday Ms Warren cited figures from...
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'Don't buy a Melbourne apartment off the plan' says burnt buyer Sep 25 2015 at 4:16 PM  http://www.afr.com/real-estate/dont-buy-a-melbourne-apartment-off-the-plan-says-burnt-buyer-20150922-gjs04w Standing defiantly in front of the South Yarra apartment development that cost her $51,000, Joan Carville has a simple message for her fellow property investors: Don't buy a Melbourne apartment off the plan.  Carville, a working mother of two in her late fifties, learned the hard way about the dangers of buying in Melbourne's inner city apartment market, where cries of "over-supply" continue to reverberate. In 2011, she lost her entire $37,000 deposit and racked up more than $14,000 in legal fees after failing to settle on a tiny $375,000 studio apartment. She had bought the unit off the plan two years earlier, on the advice of her financial adviser, but fell foul of unforseen changes to lending rules.  "Buying off the plan is very risky. Your circumstances can shift and change, but when it...
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http://www.reviewbankcode2.com.au/ArticleDocuments/CCMG%20Code%20Sub%20Supplementary%208%20May%202008.pdf   Code Compliance Monitoring Committee Supplementary submission to the review of the Code of Banking Practice Non compliant banks - Limits and Powers of the Code Compliance Monitoring Committee The Overview and Annexure B of the Code Compliance Monitoring Committee’s submission to the Code review outlined some difficulties presented by the Code Compliance Monitoring Committee Association’s constitution. Particularly, these documents highlighted:   Clause 11 of the constitution purports to limit the manner in which the Committee can use its power to name a bank following a finding of serious or systemic non compliance with the Code.  Whilst the composition, function and authority of the Committee are provided for in the Code, the Committee is established under the constitution of the Code Compliance Monitoring Committee Association (“CCMCA”). The constitution sets out powers and obligations for the Committee; The constitution imposes some qualifications and restrictions on the actions of the Committee; The...
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Page 7 At a 2008 MBA conference of IT professionals in the MB industry, an almost uniform answer was given by IT professionals in regard to one of the major reasons for the mortgage meltdown: IT was not used properly in the mortgage lending process [13]. In fact, one of the keynote speakers received the greatest applause when saying, “Don’t blame us for the problems; we just provided the tools to implement the guidelines set by others. When used properly, technology can help connect worthy customers with credible lenders and assure solid investments [13].” All of the recommendations from this IT conference are based on the underlying theme that the MB industry, as a whole, must pursue and adopt industry wide standards to ensure the guidelines used in future MB lending IT solutions are both accurate and consistent [13].   Page 9 Accuracy: Accuracy has been defined as the extent to...
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Rise of the machines as ANZ brings in robot workers to do the 'boring' jobs Aug 24 2015   http://www.afr.com/technology/rise-of-the-machines-as-anz-brings-in-robot-workers-to-do-the-boring-jobs-20150820-gj3fp6   First jobs went to India, now ANZ Banking Group is leading the way locally in a global rise of robot software systems, which can do the work of employees in fields ranging from payroll administration to helpdesk support and customer service in a fraction of the time. ANZ has spent the past year refining a well-developed program of work in an emerging field known as Robotic Process Automation (RPA), whereby tasks previously conducted by employees are now done by increasingly intelligent software that learns on the job. Much of the robotic work is initially being conducted in ANZ's network of so-called captive centres or hubs in India, the Philippines and China, but some Australian roles are already changing to incorporate the new systems. The bank says it is not a...
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Evicted woman’s sad story puts peninsula’s affordable housing crisis in focus 22 September 2015 http://www.dailytelegraph.com.au/newslocal/northern-beaches/evicted-womans-sad-story-puts-peninsulas-affordable-housing-crisis-in-focus/story-fngr8hax-1227538777594?sv=69e33c7a3879fa30dc1300113bcde0b5&utm_source=The%20Telegraph&utm_medium=email&utm_campaign=editorial   THE peninsula’s affordable housing crisis has been thrown into the spotlight after a woman was found living in a storage locker at a Brookvale facility.   It’s understood the 31-year-old had started renting the 1.5mx1m storage locker in August, paying $64 a month.  The manager of the complex noticed she had been living in there, and told her she would need to leave as she was in breach of her lease agreement. The manager sought support from a local homeless shelter to assist the woman, but she refused to leave.  The police were later called and she was removed. Chief executive of Lifeline Northern Beaches Cate Sinclair said the case was a concern for the peninsula. “I know it will shock and surprise the community at large because there just isn’t an understanding that people on...
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What banks (and regulators) turned a blind eye to...garbage in = garbage out!   http://mitiq.mit.edu/iciq/Documents/IQ%20Conference%202009/Papers/6-A.pdf   INFORMATION QUALITY ISSUES IN THE MORTGAGE BANKING INDUSTRY (Completed Academic Paper)   Page 7 At a 2008 MBA conference of IT professionals in the MB industry, an almost uniform answer was given by IT professionals in regard to one of the major reasons for the mortgage meltdown: IT was not used properly in the mortgage lending process [13]. In fact, one of the keynote speakers received the greatest applause when saying, “Don’t blame us for the problems; we just provided the tools to implement the guidelines set by others. When used properly, technology can help connect worthy customers with credible lenders and assure solid investments [13].” All of the recommendations from this IT conference are based on the underlying theme that the MB industry, as a whole, must pursue and adopt industry wide standards to ensure the...
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More chapters to come?? or missing chapters taken down through too hot to handle??      The unpleasant truth about Australian Banking http://www.bankinfoline.com/chapter-1.html   The Problematic Code describes the unfairness of bank/ customer relationships in Australia and how consumers and staff were misled into believing the code subscribing bank directors would act fairly and reasonably to customers, in a consistent and ethical manner.  The research explores how subscribing banks misled customers, without regard to the law, ethics and their Code, which sets out prudent banking practices. In 2010, four Rio Tinto executives in China received jail terms of between 7 - 14 years for having seriously damaged the interests of Chinese steel enterprises. It is impossible to imagine penalties the same court would have handed the directors and CEOs of banks if they collectively acted to damage the interests of every Chinese bank customer.   It will be interesting to see...
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ASIC tells accounting firms: 'Lift your game or else' Sue Lannin reported this story on Tuesday, December 4, 2012 12:46:00 Listen to MP3 of this story ( minutes) Alternate WMA version | MP3 download http://www.abc.net.au/worldtoday/content/2012/s3646907.htm ELEANOR HALL: Australia's corporate regulator has slammed the record of accounting firms in Australia and worldwide.  The Australian Securities and Investments Commission says it's disappointed there has been no increase in audit quality over the past year and a half.  Its message to auditors: lift your game or face tougher regulations.  Here's finance reporter, Sue Lannin. SUE LANNIN: The record of top accounting firms in Australia and around the world is not a good one.  Who can forget the fall of Arthur Anderson, once one of the big five accounting firms, implicated in failing to uncover accounting scandals at Enron Corporation.  Now US regulators have accused affiliates of the big four accounting firms in China of withholding documents.  Back home, Greg Medcraft, the chairman...
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Fodder for our book...IMF doesn’t stand for International Monetary Fund rather it may stand for “I’M Fantasizing   Repairing the Damage of Fraud As a Business Model Address of Janet Tavakoli, president of Tavakoli Structured Finance, Inc. to the Federal Housing Finance Agency’s Supervision Summit on December 8, 2010. http://www.tavakolistructuredfinance.com/fhfa-bank-fraud/ Good morning. First, let me say what an honor and privilege it is to be here today addressing the FHFA’s Supervision Summit on the topic of repairing the damage of fraud as a business model. In April 2005, I addressed the IMF and talked about emerging issues in the credit derivatives market and in the structured finance market where it was disturbing that many products were mis-rated andratings did not capture risk. Yet a year later, after the situation had become shockingly worse, the IMF’s Global Financial Stability Report of April 2006 said that dispersion of credit risk through shadow banking’s securitization system “has helped to make the banking...
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Second bite of the cherry: Loophole means clients can sue advisers after FOS award   22 August 2014   http://www.ifasalesandacquisitions.co.uk/second-bite-of-the-cherry-loophole-means-clients-can-sue-advisers-after-fos-award/     Lawyers are warning advisers remain vulnerable to consumers accepting a Financial Ombudsman Service award and then suing for more redress in court, despite a Court of Appeal ruling which held they cannot do so.  Money Marketing can reveal a loophole in the legislation because the ruling applies to ombudsman decisions only and not those made by an adjudicator. In February, the Court of Appeal ruled a complainant cannot accept redress from the FOS and then pursue the firm in court for additional redress over the same complaint.  The case centred on advice given by In Focus Asset Management & Tax Solutions to clients Barry and Julie Clark, who accepted the FOS’s maximum award of £100,000 (now £150,000 for cases brought after 1 January 2012) and attempted to sue for the balance...
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Customers lose right to sue after taking ombudsman compensation Nicole Blackmore 12:10PM GMT 14 Feb 2014 http://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/10638336/Customers-lose-right-to-sue-after-taking-ombudsman-compensation.html Financial services customers who have accepted compensation from the ombudsman can no longer sue for further redress in court following a landmark Court of Appeal ruling.   Customers who have suffered a loss caused by a financial services firm can no longer accept compensation from the ombudsman and then sue the company for additional redress in court.   The financial ombudsman can award maximum compensation of £150,000 to a customer who has lost money due to issues such as negligence, poor financial advice or mis-selling. Last year the ombudsman received over 500,000 complaints and upheld half of them, although this number is higher than normal thanks to the deluge of payment protection insurance complaints. There has been legal uncertainty around whether customers who have lost more than this amount can accept compensation from the ombudsman and then sue...
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Should be prosecuted, not just named and shamed...   Leaked Senate report calls for ATO to name and shame multinational tax dodgers 17 August 2015 http://www.abc.net.au/news/2015-08-17/multinational-tax-avoiders-could-be-named-and-shamed/6701550   Multinational tax avoiders could be named and shamed if sweeping recommendations from a leaked Senate inquiry report into tax avoidance are adopted by the Federal Government.  The ABC has seen a draft copy of the interim report due to be tabled in Federal Parliament later today which urges a significant crackdown on companies using complex loopholes to avoid or minimise tax.  One of the committee's 18 recommendations outlines an "automatic trigger that would require the ATO (Australian Tax Office) to publish the names of companies that are subject to investigation".  The committee also suggests a public register of tax avoidance settlements reached with the ATO where a settlement is above an agreed threshold.   In what could send shudders through corporate boardrooms in Australia and around the...
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I smell a white collar brat...     Big lenders bidding to keep homes   Saturday, July 6, 2013   http://www.heraldtribune.com/article/20130706/ARTICLE/130709746/2055/NEWS?p=1&tc=pg   As home prices in the region climb and inventory dries up, the nation's largest mortgage lenders are gambling on the future of the housing recovery, a Herald-Tribune analysis shows. Banking giants from Wells Fargo to Fannie Mae are routinely paying top dollar on the auction steps to hold onto their own distressed properties, outbidding cash offers and paying well above assessed value, according to a review of thousands of Southwest Florida auction purchases. They are speculating that the properties will appreciate even more in the next couple of years.  The new strategy is a shift from the years after the nadir of the foreclosure crisis, when mortgage lenders accepted any fair offer to avoid the hassle of listing the default. Yet worries are mounting that the competition between lenders...
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New Kogarah City rezoning plans sparks flood of buy-up deals for ‘glut’ of apartments   Aug. 11, 2015   http://www.theleader.com.au/story/3269528/new-kogarah-city-rezoning-plan-sparks-flood-of-buy-up-deals-for-glut-of-apartments-poll/   KOGARAH, in the grip of frenzied real estate wheeling and dealing, could be in for a shock if the New City plan is approved in its present form.  Developer Michael Anagnostou predicts a glut of apartments, falls in prices and ordinary homeowners  now hoping to make a killing having to settle for less. And Kogarah Council would be hit with an unmanageable number of development applications (DAs) as growth designed to take place across 15 years happens all at once. (Some residents have also expressed fears about lifestyle and overshadowing of buildings - see breakout below) The rezoning of parts of Kogarah to higher densities has caused a frenzy among developers, real estate agents and homeowners attempting to maximise yields in the areas which are listed for rezoning.  Homeowners are teaming up to...
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