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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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Scott Morrison locks $6.2 billion bank levy rate into law A draft bank levy law was released on Tuesday for 0.015% per quarter. James Massola  Clancy Yeates   30 May 2017   http://www.smh.com.au/federal-politics/by/James-Massola-hvf20 Mr Morrison released on Tuesday the draft bank levy law, which has been kept under wraps since being announced in the May budget, after taking it through the Coalition party room. The decision to write the levy rate, at 0.015 a quarter on banks that hold greater than $100 billion in liabilities, into the legislation will go some way towards assuaging the fears of the five banks subject to the levy. The big five were concerned a government would be able to raise the rate in future at the stroke of a pen, as had happened in the United Kingdom. Related Content 'Trivial' bank levy won't raise rates, top official says Bank levy amounts to 'quasi nationalisation' of...
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ASIC boss gears up for court battle on rate-rigging case The Australian 12:00am June 1, 2017 Ben Butler   ASIC boss Greg Medcraft has taken a hardline stance against the big banks as the corporate watchdog pursues them over alleged ­interest-rate rigging, saying only a “court-based outcome” is acceptable. Appearing before the Senate estimates committee yesterday, the chairman of the Australian Securities & Investments Commission slammed as “ridiculous” the idea that alleged big bank manipulation of the benchmark interest rate was a victimless crime. In testimony yesterday, Mr Medcraft’s deputy, Peter Kell, also revealed ASIC’s deep unhappiness with the way Macquarie Group’s troubled financial planning department had been run. However, he was unable to explain why the name of a senior CBA executive appeared on a draft press release dealing with that bank’s equally stricken financial planning business, and was forced to apologise to Nationals senator John Williams for suggesting he...
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Tangled web: Plutus law firm investigated over Henry Kaye land bank scam     Ben Schneiders and  Royce Millar   The law firm linked with a $165 million alleged tax fraud syndicate was also central to a $100 million land-banking scandal based in Victoria involving notorious property spruiker, Henry Kaye. Clamenz Evans Ellis is the subject of investigations by authorities over property schemes which ripped off millions of dollars from hundreds, possibly thousands, of small investors across Australia. The alleged scams in NSW and Victoria both include the use of complex webs of companies and trusts to obscure money flows and hide identities such as Kaye, the "phoenixing" of companies, and the use of "straw" directors as proxies in the formal running of companies. Around 2014 the firm split, becoming known as Clamenz Lawyers in Sydney and Evans Ellis in Melbourne. RELATED CONTENT Judge lifts lid on Henry Kaye's secret windfall from land bank scam...
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ASIC’s Greg Medcraft accuses banks of ‘hiding trail of advice’   The Australian 12:00am June 1, 2017 Michael Roddan   ASIC boss Greg Medcraft says the big banks and wealth management industry have used poor record-keeping to “hide a trail” of questionable financial advice. Mr Medcraft, who finishes his term at the Australian Securities & Investments Commission in November, also hit out at the vertically integrated business model of the big lenders, arguing that cross-selling wealth, advice and insurance products was “not a ­viable business strategy any more”. “The best asset the banks have is the trust of their customers,” Mr Medcraft told the Senate estimates committee. “Basically, they should be an ecosystem that has the best products for their customers — and that may not necessarily be their own products. “I think the banking model is probably going to change quite dramatically in the next few ­decades.” ASIC last month...
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Revealing look at ASIC's practices - Senate Inquiry into ASIC 2014 Michael West  APRIL 2 2014   James Wheeldon joined the Australian Securities and Investments Commission in mid-2004. It was his first legal job in Australia after graduating from Harvard Law School in 2000. He had just spent four years doing merger and acquisition deals with top-tier New York City law firm Skadden Arps. "I joined ASIC because I thought I would be working in the public service," says Wheeldon. "Silly me". Assigned to the regulatory policy branch, he was soon to review an application for relief submitted under RG51 by the Investment and Financial Services Association, the body representing Australia's banks and big retail superannuation funds. "This was not the first time I witnessed ASIC favouritism for the big banks but it was the most egregious thing I saw during my time with the regulator." RELATED CONTENT Watchdog favoured big...
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Australia housing bubble is 'quite spectacular' says Citigroup's Willem Buiter Australian Financial Review May 31 2017 5:40 PM Jonathan Shapiro   Australia must create a list of "shovel ready" infrastructure projects to keep our economy ticking along if China cracks under its mounting debt burden. That's the view of Citigroup's esteemed chief economist Willem Buiter who was in Sydney this week meeting the bank's clients. Dr Buiter, who is known for having a bearish outlook on China, described the world's second largest economy as a "cyclical accident waiting to happen." He warned the two ingredients for a downturn in China – high debt levels and overcapacity in key industries – are in place and stressed that China's total debt-to-gross domestic product ratio of 300 times was "completely out of control." "[The debt pile] is being addressed by adding to it, which works for a while, but is a losing game," he...
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Bank tax 'disproportionate' says Macquarie Group Australian Financial Review Jun 2 2017 9:00 PM Jonathan Shapiro, Joyce Moullakis   Macquarie Group says the government's controversial bank levy will have an "unintended and disproportionate" impact on its local lending operations, potentially hitting the Australian banking division's earnings by 11 per cent. The Sydney based financial institution broke its month-long silence on the controversial tax after the AFR Weekend revealed on Friday it was considering relocating its headquarters to Singapore In a statement issued late on Friday, Macquarie said the tax could increase the banking division's Australian tax rate from 34 per cent to 41 per cent, and could hit the global banks' earnings by 4 per cent, although it said the impact of the levy was "still unclear" "The scale of Macquarie Bank Limited's international and wholesale businesses means the levy may have unintended and disproportionate consequences on its local earnings," it...
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Apartment value falls outpace houses as oversupply looms The Australian 12:00am June 2, 2017 Elizabeth Redman   A looming apartment supply overhang is set to put more downward pressure on prices after apartment values in Sydney and Melbourne dropped more sharply than houses over the past month, dragging on the broader housing market. Economists warned a surge in apartment construction was likely to peak later this year and next, possibly making investors cautious about buying a property if it becomes harder to find a tenant. Apartment values across the five capital cities fell 2.4 per cent in May, according to CoreLogic figures released yesterday, faster than the 0.8 per cent drop in detached house values. Melbourne apartment values dropped 3.8 per cent in the month, while Sydney apartments fell 2.7 per cent. Unit completions are likely to reach a peak this year in Victoria and next year in NSW, according to...
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Macquarie Group ponders moving offshore Australian Financial ReviewJun 1 2017 11:00 PM Phillip Coorey   Australia's largest investment bank, Macquarie Group, is not ruling out moving offshore in the wake of the imposition of the $6.2 billion bank levy but, as of yet, has made no final decision. Macquarie, one of the five banks to be hit with the Major Bank Levy has vastly smaller retail operations in Australia than the big four and could more easily relocate it headquarters. It did not rule out relocating after senior sources told The Australian Financial Review that Macquarie Bank executives had relayed to at least one of the major political parties it was canvassing options for relocating overseas following the announcement of the bank tax in the May budget. Asked to respond, a Macquarie spokeswoman left open the option. "As we have said over the years, Macquarie consistently looks at the most appropriate...
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Cranky banks urge Scott Morrison to drop aggressive tactics Australian Financial ReviewMay 31 2017 11:30 PM Phillip Coorey, James Frost  David Murray has slammed the bank levy as a "hate tax" as he and others in the banking, investment and business communities urged Treasurer Scott Morrison to tone down his aggressive language against the banks, claiming it poses a similar threat to confidence as Labor's clamour last year for a Royal Commission. Although resigned to the imposition of the $6.2 billion bank levy, the banks remain alarmed at the tone used by the Treasurer as he sells the tax as well as tough new accountability standards for executives that will be policed by the Australian Prudential Regulation Authority. Of particular concern was a story in Wednesday's popular Sydney tabloid, The Daily Telegraph, which reported the new APRA standards as "tough new rules to crack down on high-flying executives who take drugs...
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    Duped says #
    This prize prick David Murray was very much part of the scandalous cabal and reason why our fellow members find themselves in the
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Bubble, toil and Trouble?   Australia’s housing bubble turns Irish By Unconventional Economist in Australian Property at 12:10 am on May 17, 2016 By Leith van Onselen https://www.macrobusiness.com.au/2016/05/australian-housing-bubble-turns-irish/   For years, Australia’s anti-housing bubble defenders have argued that the Australian housing market is “different” because Australia had not experienced the kinds of housing supply prevalent in places like Ireland, the US and Spain, therefore, Australian values were underpinned by a chronic “undersupply” of dwellings and pent-up demand.   For example, in September 2010, CBA released a presentation entitled “Australian residential housing mortgages: CBA mortgage book secure”, which was presented to the Group’s offshore shareholders and other investors interested in Australia and the Australian banking sector. Included in that presentation was the below slide arguing that Australian housing values were justified because of strong population growth in the face of lackluster dwelling supply:     Oh what a different 5-plus years make....
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APRA's Wayne Byres rebuffs the banks on levy and says capital will rise Australian Financial ReviewMay 30 2017 11:03 PM James Eyers  Banking regulator Wayne Byres has issued a sharp rebuke to the big banks' resistance of the budget's bank tax, saying their profits are big enough to pay it and arguments it creates risks for the economy are overblown. The Australian Prudential Regulation Authority chairman also strongly suggested on Tuesday night that mortgage risk weights for the big banks are heading higher. This would result in more capital being required, pressuring returns on equity. Earlier in the revealing session before the Senate economics legislation committee in Parliament House, Mr Byres said increases to APRA's powers unveiled in the budget would make it more effective and not compromise its approach to proactive supervision, as some bank chairs had suggested. Capital for mortgages APRA will release its position on "unquestionably strong" capital...
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ASIC CORRUPTED by Australian Major Banks and Big Business from inception.    ASIC was in fact CORRUPTED by Banks and Big Business from inception. I have, over 19 Years, seen thousands of these ASIC "Buzz Off letters." Each person is told (wte) "we do not handle consumer complaints, no public interest to do so, go and get a lawyer." ASIC know that consumers who have been fleeced are left with NO funds to seek even one hour with a lawyer. ASIC's culture led this monolith of uselessness to only look down at consumers as if low-life's and nuisances. Former ASIC lawyer James Wheeldon gave evidence to Parliament 2 April 2014, as to being told to rule in favour of Insurance giants in 2005 amid threats to the Commissioner from industry: not in the Public interest and not in consumer interests re CALCULATORS. Wheeldon told them NO I cannot agree as that...
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    Duped says #
    We have all been given these ridiculous ASIC flick letters where these excuses are the norm, "not in the public interest to invest
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About time......?  Slow-coach ASIC, 19 years too late!!!! Hewson was promoting Westpoint Peacock was promoting MFS......what a nest of Vipers..................   MFS directors hit with $615m compensation order, fines, bans Sarah Danckert 26 May 2017-05-30 http://www.smh.com.au/business/mfs-directors-hit-with-615m-compensation-order-fines-bans-20170526-gwds0f.html The cabal of former directors who oversaw one of Australia's biggest financial collapses has been ordered to pay $615 million in compensation to more than 10,000 long-suffering retirees. It is believed to be one of the biggest compensation orders relating to a company collapse in Australian history with legal experts calling the size of the compensation "extraordinary". The directors of the former MFS Investment Management business and the officers of its operating entity MFS Ltd have also been banned from being company directors for varying lengths of time, and received financial penalties. The payments ordered by the courts will be directed to the thousands of retirees who put their life savings into MFS investment vehicle the...
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Altair Asset Management hands back cash to clients citing looming correction "Mortgage fraud is endemic, it's systemic, it's just terrible what's going on. When you've got 30-year-olds, who have never seen a property downturn before, borrowing up to 80 per cent to buy three and four apartments, it's a bubble." Patrick Commins 29 May 2017-05-30 http://www.smh.com.au/business/markets/fund-manager-hands-back-cash-to-clients-citing-looming-correction-20170529-gwfgua.html Australian asset manager Altair Asset Management has made the extraordinary decision to liquidate its Australian shares funds and return "hundreds of millions" of dollars back to its clients, citing an impending property market "calamity" and the "overvalued and dangerous time in this cycle". "Giving up management and performance fees and handing back cash from investments managed by us is a seminal decision, however preserving client's assets is what all fund managers should put before their own interests," Philip Parker, who serves as Altair's chairman and chief investment officer, said in a statement on Monday. The...
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Rush of Australian securitized home loans tempts yield-starved Japanese   Shocking attempt to sell rubbish RMBS bonds to Japan.   By Cecile Lefort and Hideyuki Sano | SYDNEY/TOKYO   24 May 2017 http://www.reuters.com/article/us-australia-securitisation-idUSKBN18J0JX SYDNEY/TOKYO Australia has become the world's most active market for securitized home loans, with sales at their highest in a decade as lenders seek to take advantage of surging demand from yield-starved Japanese investors The strong demand has come in the midst of a property boom that has seen Sydney and Melbourne home prices double since 2009, prompting regulators, the central bank and the International Monetary Fund to issue warnings over a potential market bubble. While a surge in securitized debt and property boom might raise parallels with the U.S. subprime crisis that led to the 2008-2009 global financial meltdown, investors say they are getting far better regulatory protection in Australia than they had in the United States back...
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RISKS OF RESIDENTIAL MORTGAGE-BACKED SECURITIES IN AUSTRALIA – LEGAL AND REGULATORY ASPECTS PELMA JACINTH RAJAPAKSE[*] IV CONTRACTUAL CONSIDERATIONS http://www.austlii.edu.au/au/journals/UNSWLawJl/2006/42.html A Notice to Borrowers   .......Securitisation via RMBS programs involves the risk that borrowers might find their homes sold by downstream financial intermediaries who have ‘purchased’ their bank’s or independent mortgage provider’s (‘IMP’s’)[123] mortgagee rights. This is not because of a failure to pay on the part of the borrowers, but as a result of some act or omission by one of the financial intermediaries in the supply chain or the insolvency of the intermediary.[124] This begs the question of whether most home loan borrowers are aware of this risk at the time of taking out their loans. Experience would indicate that most are not, nor is it specifically brought to their attention. Furthermore, if they adopt novel financing arrangements that may impact on the borrower, the banks and IMPs may have a duty...
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The Business does the coming property correction  In the wake of Standard & Poors' downgrading of 23 smaller banks because of an "increased risk of a sharp correction in property prices", ABC's The Business examines the potential fallout featuring    LF Economics Philip Soos describing the Bubble. https://www.youtube.com/watch?v=Ml5LYlFcy6Y   By Unconventional Economist in Australian Property   May 25, 2017   https://www.macrobusiness.com.au/2017/05/business-coming-property-correction/     By Leith van Onselen   In the wake of Standard & Poors (S&P) downgrading of 23 smaller banks because of an “increased risk of a sharp correction in property prices”, ABC’s The Business ran an interesting segment last night examining the potential fallout.   The most interesting guest was Chinese real estate agent, Ming Li, who specialises in selling Melbourne properties to Chinese investors.   Li claims that Chinese buyers are losing interest in Melbourne apartments due to the pending oversupply and the lack of capital growth. Li also...
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http://www.theage.com.au/articles/2002/05/10/1021002394603.html ...........Initial discussions in early 2000 led to LIXI's formation as a not-for-profit company and an invitation to all potentially interested parties - lenders, mortgage brokers and insurers, merchant bankers, technologists and others - to join in developing mutually beneficial technical standards.  The project demanded an open and collaborative development process, to which end PageSeeder, a tool that gives users the ability to cumulatively add comments to documents across the Web, was used on the group's website - www.lixi.com.au.  The CAL pilot was delivered in November 2001. .........    Australian Banks and Mortgage Brokers sell a deal to Govt. to get electronic access to title deeds Posted on Saturday, 13 October 2012   http://www.bfcsa.com.au/index.php/entry/australian-banks-and-mortgage-brokers-sell-a-deal-to-govt-to-get-electronic-access-to-title-deeds The existence of a national system to process electronic loan applications can now be directly linked to “done deals” by Banksters involving COAG and State and Federal Governments. A national electronic mortgage clearing house is about to...
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Explains the tracker....Westpac first cab off the rank.......Bob Joss CEO........  Mortgage Banking Australia Style http://www.housingfinance.org/uploads/Publicationsmanager/9906_Aus.pdf  Page 3 .....there are several Australian-specific features that are unique in the international market.  Many of these features would pose a challenge to normal securitisation criteria.....Redraw........Top Up........Portability.......Interest Offset........Product Switching..........Apportioned interest........Break charges..........Payment holidays.......Multi Borrowers.......Multi Securities (Collateral)............Combination Loans.......Securitisation and the UCCC................   Page 5 .....Westpac viewed compliance with UCCC as a competitive advantage.  It was questionable whether other Australian lending institutions would meet the deadline.......  Pages 7-8 .....Westpac developed a unique compensation program heavily weighted to learning.  In addition to to industry equivalent wages and benefits, each employee was given certain standards of performance that when achieved provided them with a certification of compliance and financial reward...........  Home loan origination process changes Instead of the customers looking at the various products and features, his or her loan requirements are entered into the computer system.  The system searches all available...
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