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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IMF warning to Australia over rapidly growing debt The Australian 12:00am October 16, 2017 David Uren   Debts have risen faster over the past decade in Australia than in most other G20 nations, leading the IMF to warn that the ­nation is testing the financial market’s tolerance for risk. The International Monetary Fund is particularly worried about Australian household debts, which are 23 per cent larger than annual gross domestic product, a level by far the highest among G20 nations, with Canada the only other nation with household debts larger than the economy. “Household leverage and high house prices in Australia and Canada make these economies more susceptible to risk premium shocks,” the fund’s analysis of financial stability says. “There is a particularly strong need for financial-sector policy vigilance to guard against further build-up of imbalances.” The combined debts of government, business and households in Australia are now 147 per cent...
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Crossbench senators consider throwing a spanner in lobbying revolving door Sydney Morning Herald October 16 2017 Mario Christodoulou, Patrick Begley   Crossbench senators are discussing the biggest clampdown on federal lobbying in a decade, including five-year bans on former government ministers working as lobbyists and the creation of a new "integrity commissioner". The proposal, drawn up by independent Tasmanian senator Jacqui Lambie, is aimed at increasing transparency and includes new restrictions aimed at disrupting the revolving door between Parliament and the lobbying industry. Under the proposal, there would be new legislative penalties for those who breach the lobbying code of conduct and an independent umpire with investigative powers to provide oversight of the industry. Unions, industry groups and in-house lobbyists for the first time will come under a mandatory industry code, policed by the Australian Competition and Consumer Commission. "This plan is a fix – it radically transforms the way the...
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'Miners are dying': The human cost of WA's FIFO economy WA Today October 16 2017 - 2:52pm Hannah Barry   "Our forefathers went away for war, our generation go away for work, but sadly now the only enemy killing us is in our minds." This is how Robert* describes the reality of the fly-in, fly-out lifestyle. Having worked in the industry for over 10 years on West Australian sites, he said the stress from his job, his workmates and his family had him lose his hair "in clumps" at one stage. Two years ago, the WA government conducted a 10-month investigation into the factors that lead to suicide among fly-in, fly-out workers. "The impact of FIFO work practices on mental health" report made 42 key findings and 30 recommendations regarding depression, workplace bullying, alcohol, harassment and suicide. In cruel happenstance, the report was tabled in parliament on the same day a...
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Bendigo and Adelaide Bank kicks off $300m hybrid offer Australian Financial Review Oct 16 2017 7:29 PM Jonathan Shapiro, Joyce Moullakis   Regional lender Bendigo and Adelaide Bank has kicked off a $300 million hybrid debt raising to replace maturing securities and bolster its regulatory capital. The bank's Converting Preference Share 4 offer, flagged by the The Australian Financial Review's Street Talk column, is set to pay investors a margin of between 3.75 and 3.95 percentage points over the bank bill rate of 1.7 per cent. That will result in an initial yield between 5.45 and 5.65 per cent. The 3.75 per cent to 3.95 per cent margin range compares to a 3.50 per cent trading spread on the existing BENPF securities that are due to be called in June 2021. The notes have a call date set in June 2024 and will refinance an existing issue of $269 million of...
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What is the Real Estate Treasurer doing in New York? Macro Business 9:49 am October 16, 2017   Interesting stuff as the Real Estate Treasurer continues his bubble-defence world tour: When Treasurer Scott Morrison met Goldman Sachs chief executive Lloyd Blankfein in New York late last week, the Wall Street banker was baffled. Blankfein was searching for answers. Why, at a time when most economies were generally performing reasonably, had politics become so difficult in many countries? “He does find that perplexing because their view is [economic] things are a lot better than the politics reflect,” Morrison told The Australian Financial Review in Washington on Friday. “I made this point: so long as we’ve got wages growth in the space it’s in then it’s understandable that we’ll continue to have those political frustrations.” …”I’ve better talking about better days ahead in the budget and beyond, and I think there’s a very...
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Australia's house prices surged 6,556 per cent since the 1960s, BIS says ABC News 16 October 2017 David Chau   Australian housing prices have surged by a massive 6,556 per cent since the early 1960s — an average increase of 8.1 per cent every year. Compared to other advanced economies in the past five decades, Australia had the sixth highest rise in annual property prices. It was beaten by Spain (+9.9pc), UK (+9.3pc), New Zealand (+8.8pc), Italy (+8.8pc) and Ireland (8.7pc). The United States, in comparison, had a 1,332 per cent lift in housing prices in the last five decades, and an average gain of 6 per cent per year. Those findings were from the Switzerland-based Bank of International Settlements (BIS), which researched the impact of short-term interest rates on house prices across 47 countries (advanced and emerging economies). BIS also considered whether housing is a "good long-term investment". Short-term interest...
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Cost cutting and understaffing of aged care homes leads to rationing and neglect Sydney Morning Herald October 15 2017 - 1:02pm Anna Patty   EXCLUSIVE  If the incontinence pads are half wet, they stay on. This is the instruction that aged care worker Esther Priol says she and her colleagues have been directed to follow – even when elderly nursing home residents ask to be changed. "We have been told we have been spending too much money on pads," Ms Priol said. "Unless they are 75 per cent wet, then the rule is we don't change them. "You divide the pad into fours and if three-fourths of the pad is wet, you change it." Ms Priol, who works at an aged care facility in Sydney's west, is one of thousands of aged care workers nationally who complain about increased rationing of everything from incontinence pads to meals. They say they struggle...
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South Australia pays the price of the LNP obsession with #FakeInvestment Posted on 16/10/2017 by The Glass Pyramid https://theglass-pyramid.com/2017/10/16/south-australia-pays-the-price-of-the-lnp-obsession-with-fakeinvestment/ South Australian Premier Jay Weatherill correctly rejects a population Ponzi scheme as an economic plan for South Australia’s future. The biggest challenge facing South Australia and other regional parts of Australia is the current Australian economic model which favours unproductive speculation and #FakeInvestment in the form of private bank credit creation “household debt” directed towards asset price speculation. Howard and Costello gave this debt driven economic model their full support by introducing a model of “independent” banking regulation, the RBA and APRA, that was described as ‘independent’ but in truth was willingly and rapidly captured by the interests of the banking and finance sector.  The relationship between the private banks and RBA and APRA is so inherently intimate that anything less than a Vulcan mind meld would have been a surprise.   To...
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Interest-only home loans a ticking time-bomb, warns UBS READ "BFCSA told you so re 80% IO Loans in 2013" see FACEBOOK wwww.facebook.com/BFCSA By business reporter Michael Janda Updated about an hour ago PHOTO: Rates on interest-only loans have risen by nearly half a percentage point for owner-occupiers over the past year. (AAP: Dan Peled) RELATED STORY: Banks warned over default risk from $500b in 'liar loan' mortgages RELATED STORY: As APRA warns of more interest rate rises, ANZ delivers MAP: Australia Up to a third of borrowers with interest-only loans may not realise they have them, UBS has warned in a stunning finding from its survey of recent borrowers. The global investment bank surveyed more than 900 people who had taken out home loans over the past year as part of its research into "liar loans", where people had given inaccurate information on their applications. The analysts cross-checked their survey results against official data to ensure that their sample...
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APRA should be sacked....victims of lender mortgage fraud who still should be home owners can bugger off and buy a tent...I smelled a RAT when reported in the media that Highrise Harry had popped into to have a chat...more like greasing palms with regulators.. Comments from    https://www.macrobusiness.com.au/2017/04/apra-squibbed-proper-macroprudential-for-highrise-harry/ Democracy is broken when folks like highrise let them have cake Harry can dictate policy....he made a product only foreigners want not locals. And as such should suffer the consequences of hedging his bet the wrong way…   Byres trusts Harry will look after him after he leaves APRA. He’s soon to learn about Harry’s subsection of society’s reputation for loyalty and honour. Ahem   'Extraordinary prices': key worker rental scheme under scrutiny in surging Sydney property market   Sean Nicholls 2 October 2017 http://www.smh.com.au/business/property/extraordinary-prices--key-worker-rental-scheme-under-scrutiny-in-surging-sydney-property-market-20171001-gys7hh.html Sydney's property boom is allowing developers to undermine the state's affordable housing laws. The key housing scheme, which is...
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How APRA ASSISTED BANKS in stealing your HOMES APRA in control or out of control?  PROOF that self-regulation means if one lender’s calculator says NO you just find a lender with a ‘more favourable’ calculator! USUALLY THE BG FOUR DODGY CALCULATORS!   No mention that each application impacts on your credit score BUT no worries there with software available to take care of that problem!    Add in money laundering to the formula and it’s a dogs breakfast for investors and a feast for property developers!       How APRA has changed investors’ ability to borrow   By Unconventional Economist in Australian banks, Australian Property at 1:12 pm on September 1, 2015 | 8 comments By Redom Syed, republished with permission from Property Chat:   Last week the APRA chairman delivered a telling speech about the future of the lending market in Australia.   The speech was the best public indication...
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More dodgy CBA statistics reported to the ASX in stealth....   CBA Reclassifies Loans Martin North 2 October 2017  http://www.digitalfinanceanalytics.com/blog/cba-reclassifies-loans/  At 12:13 PM on Friday 29th September, before the long weekend, Commonwealth Bank of Australia (CBA) advised the ASX that following clarification of loan purpose reporting guidelines, certain statistical data have been reclassified as part of regulatory reporting obligations for Authorised Deposit-taking Institutions. It did not come through their normal press release channels. The reclassification relates to mortgage-secured household lending data for the periods between October 2015 and July 2017. The approximate impacts of the reclassification as at 31 July 2017 include: ·         Restatement of Loans to Households: Housing: Owner-occupied from $278.4bn to $273.9bn; ·         Restatement of Loans to Households: Housing: Investment from $138.2bn to $134.8bn; and ·         Restatement of Loans to Households: Other from $10.1 bn to $18.0 bn The reclassification is for statistical reporting purposes only and has no...
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'Mortgage fraud' hitting vulnerable: advocate   Banking and Finance Consumers Support Association president Denise Brailey warned the big four banks were scrapping some unpopular fees and cracking down on home loan applications as a last- minute attempt to win public support and stave off a Royal Commission.   Banks dodge a bullet   The big banks dodge one bullet, with APRA's relatively modest capital increase, but the regulator still has mortgages in its sights.   On Sunday, the Commonwealth Bank announced it was scrapping fees for customers using other bank's ATM machines. That decision was quickly followed by the ANZ, Westpac and NAB. Ms Brailey has long accused the banks of committing widespread mortgage fraud to increase profits by deliberately targeting vulnerable people in the community. These include pensioners the banks dubbed ARIP customers — or asset rich and income poor. Ms Brailey said she had more than 2,000 low income people...
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CONSUMERS HAVE WOKEN UP: IT THE BANKS THE BANKS THE BANKS Consumer Groups around the Nation are realising the DEPTH OF DEPRAVITY re sol called LIAR LOANS generated by BANKS.................  thise set of comments from BRN. Customers did not lie:  and Sellers did not realise the Income Fudging Calculators were spring loaded with FRAUD.   The ANZ is warning mortgage brokers that residential loan applications must be a "source of truth" in what appears to be a response to regulatory and investment bank claims that borrowers had qualified for about $500 billion in "liar loans"......if you haven't fallen off your chairs laughing folks, read on. The majors are demanding more financial information from property borrowers in response to growing regulatory concern about spiralling household debt, static incomes and t...he increasingly likelihood of rising interest rates! Earlier this month Australian Securities and Investments Commission chairman Greg Medcraft warned a broken mortgage broker remuneration...
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Worst kept secret: CBA banker to head ASIC - by The Michael West Despatch   It is the worse kept secret in the business world; that is the impending appointment of former Commonwealth Bank counsel, John O’Sullivan, to head up the corporate regulator. The optics are not good. CBA to the Australian Securities & Investments Commission via a stint as chairman of Credit Suisse investment bank. As Liberal Party donor and mate of PM Malcolm Turnbull, O’Sullivan has the Opposition crying foul. This has been one of the most leaked appointments in memory and the press coverage enshrines the culture wars going on in financial media. The Australian and the Australian Financial Review have been deployed by “sources” to soften up public opinion. How could a CBA executive possibly head up the regulator after Storm Financial, the CBA financial advice and Comminsure scandals and now the biggest blow-up of all, the...
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11 Loopholes The World’s Biggest Corporations Use To Skirt The Rule Of Law https://mic.com/articles/78669/11-loopholes-the-world-s-biggest-corporations-use-to-skirt-the-rule-of-law#.W3eUvJHQ4   For all itsmajesty, the law is imperfect, and, if you're willing to pay a room full of corporate lawyers seven-figure salaries, they're likely to come up with all kinds of clever (and legal) ways of circumventing the spirit, if not the letter, of the law. Such corporate loopholes have allowed multi-billion dollar corporations to do things like circumvent campaign finance law, stiff the IRS and get generous tax subsidies for criminal malfeasance. Here are 11 of the worst legal loopholes corporations have come up with:   1. Tax havens and transfer pricing Multinational corporations don't have to pay taxes on overseas profits; that is, until they transfer those profits back home. This would make sense, if it weren't for a practice known as "transfer pricing," where a multinational corporation can transfer the profits of a U.S....
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APRA seeks to grant actuaries greater powers The Australian 12:00am September 29, 2017 Michael Roddan   The prudential regulator has proposed giving actuaries unprecedented access to insurance company boards, auditors and senior executives as it looks to put companies on the hook if they ignore the advice of their boffins. The Australian Prudential Regulation Authority yesterday revealed a consultation package on cementing greater powers for appointed actuaries within insurance, life insurance and health insurance companies across the nation. The package of guidelines is an attempt to rectify years of mispricing and poorly managed risk in the industry, which has seen huge losses in life insurance, budget blowouts for natural-disaster cover and rising unsustainability in health insurance. APRA is concerned senior executives had not taken seriously the advice of their actuaries, who help insurers assess financial risks when designing insurance policies and pricing. APRA member Geoff Summerhayes said appointed actuaries played a...
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Sacked Commonwealth Bank of Australia manager charged over bribery in US Australian Financial Review Sep 29 2017 5:16 AM John Kehoe   A former Commonwealth Bank of Australia technology executive and a contractor to the bank have both been charged by law enforcement authorities in the United States for participating in a multi-million dollar bribery and kickback scheme. Jon Waldron was one of two Commonwealth Bank technology managers in 2013 and 2014 who allegedly shared in $US2.5 million of bribes facilitated by an American software contractor to the bank, Eric Pulier. Mr Waldron, 47, and Mr Pulier, 50, were indicted in Los Angeles on Thursday for conspiracy to commit securities fraud and wire fraud, charges that carry maximum jail sentences of 25 and 20 years respectively. The scheme allegedly involved ServiceMesh founder Mr Pulier orchestrating bribes to Sydney-based Mr Waldron and CBA colleague Keith Hunter to approve more than $10 million...
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Central banks unfairly blamed for woes, government also responsible Australian Financial Review Sep 28 2017 8:28 PM Jacob Greber   Reserve Bank of Australia deputy governor Guy Debelle has launched a staunch defence of central bank independence, hitting back at a growing tide of post-2008 critics who blame faceless and unelected policymakers for a litany of woes. Acknowledging that public criticism is a key "quid pro quo" for independence, Dr Debelle said, however, that inflation targeting and independence were unfairly blamed for economic results that were unrelated to either of those things. Warning that the current arrangements were under threat on a number of fronts – including from those who blame it for worsening inequality and low wage growth around developed countries – Dr Debelle suggested governments must share responsibility for the unhappiness over weak growth, jobs and wages since the crisis. One result of more than 20 years of inflation-targetting...
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  BIG BAD Bankers kept funding Developers and not a PLAN on site!  Welcome to the Land of Empty Houses and streets crowded with Homelessness.  Banks ignored ABS.   Bloomie does Australia’s ghost towers By Unconventional Economist in Australian Property, Featured Article at 1:04 pm on September 22, 2017 | 56 comments https://www.macrobusiness.com.au/2017/09/bloomie-australias-ghost-towers/ From Bloomberg comes an interesting report on Australia’s vacant apartment buildings and the futile plans for a vacancy tax: On a wet, midweek evening when most Australians are home cooking dinner, less than a third of the lights are on in the apartments in Melbourne’s Docklands. Most shops and restaurants are closed. The only people passing through seem to be on their way elsewhere. These “ghost towers,” as the high-end residential property with three-bedroom apartments costing almost $1 million have been dubbed, are popular with Chinese investors who mostly live abroad… Now, policy makers are seizing on public...
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