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BFCSA
MORTGAGE
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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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Denise Brailey

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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Denise

Denise

Denise Brailey has dedicated the past 20 years of her life to being a Consumer Advocate - a voice for the people and former President of RECA (Real Estate Consumer Association. She has helped thousands of investors and is currently President of the BFCSA (Banking & Finance Consumers Support Association). Denise was also awarded and presented with the Rona Oakley Award for Consumer Protection in 2010.
Nurse's $3 million in loans raises questions about banks' lending practices   7.30 Report by Claire Moodie  ON 7.30 REPORT ABC 12th Mch 2018 By Claire Moodie Updated about an hour agoMon 12 Mar 2018, 5:58pm http://www.abc.net.au/news/2018-03-12/banks-lending-practices-questioned/9534010   Photo: Linda Schmidt is at risk of losing her home after taking out 11 interest only loans (ABC News: Claire Moodie ) Related Story: Witnesses queueing to tell their stories to the banking royal commission Related Story: A focus on responsible lending will uncover huge problems for the banks Related Story: What we learned from day one of the banking royal commission At 71, Linda Schmidt should be enjoying retirement. But for the past two years the Perth nurse has been crippled by debt, and fighting the banks. "I just survive from day to day, black dog trotting around behind me," she told 7.30. She owes more than $3 million to half a...
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Lifting the lid on a lending debacle The Australian 11:04am March 9, 2018 Robert Gottliebsen   A simple decision in the Federal Court last month may have opened the lid on major management mistakes by Australian banks that could trigger a rise in bad housing debts. Moreover, shareholders may have been grossly misled about the income security backing vast numbers of housing loans offered by the banks. These are very serious issues that potentially threaten the level of bank share prices in Australia. Accordingly, in my view, this will be one of the major issues that will face the royal commission into banking. These are strong comments but I make them after going through remarkable research by the giant global investment research house UBS. You will remember that last year UBS raised the prospect of so called “liar loans” in reference to the false statements that some people were making on their bank loan applications. Now,...
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NAB, ANZ cut interest rates as mortgage war heats up The Australian 12:00am March 10, 2018 Richard Gluyas   National Australia Bank and ANZ Bank have joined a home loan war for owner-occupiers and investors now that the major banks have complied with lending caps imposed by the prudential regulator. NAB announced yesterday a 50-basis-point cut to 4.09 per cent in its five-year fixed-rate product for owner-occupiers paying principal and interest. Two and three-year fixed rates for interest-only loans were sliced by 30 basis points to 4.49 per cent. ANZ followed suit, cutting three and five-year fixed rates by 40 basis points on its interest-only packages for investors. The rate for the three-year product is now 4.89 per cent, while the five-year loan is pegged at 5.39 per cent. Commonwealth Bank started the discount war last Friday, slashing its two-year, interest-only fixed-rate loan to investors by 50 basis points to 4.34...
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Fraud and identify theft 'growing threat' to $1.7 trillion real estate business Australian Financial Review Mar 9 2018 3:30 PM Duncan Hughes   Mis-selling, fraud, 'out of control' identity theft and hacking are a growing threat to the nation's $1.7 trillion real estate sector, according to analysis by banking and technology specialists. A mix of antiquated and inadequate digital processing, regulatory gaps, sophisticated hackers, fraud and absence of manual systems are creating unprecedented levels of risk to borrowers and lenders, they claim. "It is so easy to steal identity that it has got out of control," said Geoff Stockton, managing director of The PRM Group, which provides systems and support for verifying ID. Alex Tilley, a senior security researcher at SecureWorks, a listed digital security specialist, said email hacking between home buyers and estate agents, which is a big problem in the US, is taking grip in Australia. Mr Tilley said...
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ASIC questions Westpac over uncalled witnesses in superannuation court case Australian Financial Review Mar 8 2018 11:00 PM Misa Han   The corporate regulator has questioned Westpac's decision not to call three of its sales call centre employees as witnesses in court proceedings and said the staff misunderstood their obligations about not giving personal advice to customers. Australian Securities and Investments Commission and Westpac are in court over the bank's "super activation campaign", where the bank contacted its existing BT super customers offering to roll over their super from other accounts. ASIC alleges the campaign amounted to giving personal financial product advice in breach of the Future of Financial Advice laws, and many BT customers lost the opportunity to receive proper financial advice about insurance, super fees and performance as a result. Westpac denies this, saying there was "nothing intrinsically wrong" with trying to get people to consolidate their super and...
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CBA treasurer was warned of possible BBSW investigation The Australian 12:00am March 9, 2018 Ben Butler, Michael Roddan   During her time as CBA treasurer, high-flying Westpac executive Lyn Cobley was warned that “aggressive” behaviour in the bank bill market was likely to result in an investigation by authorities, Federal Court documents reveal. A fresh cache of emails, phone calls and chatroom transcripts, relied upon by the Australian Securities & Investments Com­mission in a rate-rigging case against CBA, also sheds more light on trading room culture, with CBA bankers invoking Hollywood in apparent defence of rate manipulation and being told that rivals would “f... you like you are being done by a Russian hooker on speed”. The documents also show CBA executives discussed how to “push up”, “set” and “destroy” the key bank bill swap rate benchmark, which is used to price billions of dollars of loans across the economy. In...
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Standard & Poor's class action to test limit for claims Australian Financial Review Mar 8 2018 11:00 PM Jemima Whyte   A $250 million class action against Standard & Poor's ratings of risky financial products during the GFC is set to begin next Monday in the Federal Court of Australia and could pave the way for a wave of more claims. This latest class action on behalf of local councils and other investors includes four claims and 13 separate products. It covers synthetic collaterised debt obligations (SCDO) products between 2006 and 2008 rated by S&P. It is unusual in that it is likely to be heard in court. Last year, the Federal Court granted leave to investors in the class action to pursue a "tort of deceit claim" against S&P over the way it rated investments, arguing S&P intentionally tweaked its ratings methodology to rate products more highly. If successful, the...
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ACCC to deliver mortgage pricing inquiry report next week Sydney Morning Herald 9 March 2018 — 12:15am Clancy Yeates   The competition watchdog is preparing to release a key report into home loan interest rates next week, when banks will also face their first round of public scrutiny from the royal commission. Among the many inquiries into banks, the Australian Competition and Consumer Commission has since last May's budget been conducting a powerful review of mortgage interest rate decisions, which have been publicly attacked by politicians in recent years. The review is likely to touch on long-running debates surrounding banks' mortgage pricing, including the veracity of the industry's explanations for moving interest rates. ACCC chairman Rod Sims confirmed that the the interim review, which has probed the banks' confidential information, was likely to be released next week. He would not discuss the report's findings but said it promised to be a...
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O’Dwyer points to RC review of ASIC and APRA moneymanagement.com.au8 March 2018 Mike Taylor The Minister for Revenue and Financial Services, Kelly O’Dwyer has reinforced that the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industry will be inquiring into the effectiveness and ability of the financial regulators – the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA). In an address to the Insurance Council of Australia and on the same day that the Royal Commission listed APRA and ASIC to be part of its hearings next week, O’Dwyer also indicated the Government’s intention to deliver ASIC product intervention powers. She said the Government was consulting on draft legislation to give ASIC product intervention powers and to put design and distribution obligations in place. “It is critical that these reforms—that of course resulted from the landmark Financial System Inquiry—enhance consumer protections and make...
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CBA junks troublesome insurance policies Australian Financial Review Mar 7 2018 5:46 PM James Frost   Commonwealth Bank has axed a pair of troublesome insurance products and pledged to refund customers a total of $26 million ahead of a public and potentially embarrassing examination of the policies next week at the Hayne royal commission. CBA group retail banking executive and incoming CEO Matt Comyn announced plans to stop offering the Credit Card Plus and Personal Loan Protection insurance products and implement a program to refund as many as 140,000 customers on Wednesday. "We have concerns that some customers who have been sold these products may not have been eligible to receive all of the employment-related benefits. We have also sought consumer groups' views on our concerns and they agree," Mr Comyn said. The bank says it has set aside $16 million for remediation and follows $10 million in refunds the bank...
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Hybrid criticism 'misplaced' says CBA treasurer Paolo Tonucci Australian Financial Review Mar 7 2018 3:37 PM Jonathan Shapiro   The treasurer of the Commonwealth Bank says criticism that hybrid securities are complex products sold to misinformed investors is "misplaced" as the bank launched an offer that is expected to raise up to $1.25 billion from yield seeking investors. On Wednesday, CBA announced the 10th iteration of its PERLS hybrid securities transaction. The securities that are raised so that banks can increase their regulatory capital will pay a margin of between 3.4 to 3.6 percentage points over the bank bill rate.     Outgoing group Treasurer Paolo Tonucci said he expected to see strong demand from retail investors for the offer that has a minimum target of $750 million.    "When we talk about [retail], most of that is private banks, not mums and dads. It's typically reasonably wealthy and sophisticated investors," he...
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Turnbull’s son: I was sidelined for blowing whistle on 1MDB bank scandal The Australian 12:00am March 8, 2018 Ben Butler   Alex Turnbull, the Prime Minister’s son, claims he was sidelined from his executive position at a global investment bank after blowing the whistle on billions of dollars of allegedly dodgy deals done with scandal-ridden Malaysian sovereign wealth fund 1MDB. In 2012 and 2013, while Alex Turnbull was working in Singapore at Goldman Sachs — the same bank that employed his ­father Malcolm in the late 1990s — the organisation raised bonds for 1MDB worth $US6 billion. The 1MDB deals, organised by senior banker Tim Leissner, were extremely lucrative for Goldman Sachs, reaping it almost $US590 million in fees and commissions. The US Department of Justice alleges $US2.62bn of the bond proceeds were pillaged by Malaysian elites, including Prime Minister Najib Razak, as part of a plot to loot 1MDB. Mr...
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10,000 property buyers caught in Deposit Power collapse Australian Financial Review Mar 7 2018 1:46 PM Duncan Hughes   A leading national property finance company has collapsed potentially leaving an estimated 10,000 residential, commercial and property investors in the lurch about the fate of nearly $300 million worth of deposits.  Deposit Power, which provided interim finance to property buyers, has closed its doors after the collapse of New Zealand's CBL's insurance, which was an issuer and guarantor of deposit bonds. CBL has yet to inform Australian liquidators about whether Sydney-based Deposit Power will fully, or partially, back the bonds. Deposit Power had links with most of the major property broker networks, including Mortgage Choice and Connective, and major banks through their broker networks. There are fears that the status of existing deals – which used the deposit bonds as a form of bridging finance for up to 48 months – could...
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LIXI back channel enhancements coming soon:  TRACKER OF THE APPLICATION FORM. The BANK LIXI was an innovative PASS THE PARCEL system for SELLERS (bank managers, officers and agents of the bank) of shopping for APPROVALS - circa 2007 The Rolls Royce mass approval system of unaffordable loans.   ANZ Bank Version Oct 2007 Recently ANZ broker distribution has been working on enhancements to the back channel status updates provided for LIXI applications.  These enhancements will provide brokers with significant improvements in the tracking of their LIXI submitted applications through key milestones in the loan process, from submission right through to settlement.   New Lixi application status updates 1/  Supporting documents received 2/  Referred to Credit Processing Centre 3/  Referred to Mortgage Insurer 4/  Approved subject to........ 5/  Approved in principal 6/  Deferred (further assessment)   (very few deferred yet ROBO APPROVED) 7/  ROBO Approved 8/  Document Preparation Commenced - Contracts drawn by...
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Hope for mortgage 'victims' with homeowners winning battle against banks   ·         Anthony Klan ·         TheAustralian   ·         12:00AM June 4, 2012   Ms Brailey, who has been tracking low-doc loans and loan application issues with The Australian for several years, said she had uncovered examples of loan application irregularities in loans approved by 14 banks and other lenders.  She obtained emails illustrating imprudent lending practices by 36 banks and non-bank lenders, including all of the major banks.   "We're about to see a major train wreck," she said.   Jill and John O'Donnell were able to keep their family home at Freshwater, Sydney, thanks to a Supreme Court ruling that cut their mortgage by 75 per cent. Picture: Alan Pryke THOUSANDS of struggling homeowners could walk away from their mortgages as a series of court cases helps to expose widespread improper lending practices involving some of the nation's biggest financial...
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Big four banks bailing out of the bush The Australian 12:00am March 7, 2018 Michael Roddan   The big four banks have closed more than 100 branches over the past year as they pull out of smaller towns to focus on growth corridors of Australia’s major cities. New figures released by the bank regulator, the Australian Prudential Regulation Authority, show ANZ, Commonwealth Bank, National Australia Bank and Westpac-owned brands have reduced outlets that offer “branch level service”. At the same time, regional lenders, including Bendigo, are ramping up their presence in country towns across Australia. CBA closed 13 outlets offering branch-level service, the APRA figures show. ANZ closed 30 branch-equivalent outlets, while Westpac shut 49. NAB has shut 18 since the 2016 financial year. CBA retains the nation’s biggest branch network with 1118 outlets, followed by Westpac, which has 1032, including St George, Bank of Melbourne and Bank SA-branded branches. NAB...
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ASIC eyes banks for ‘predatory’ policy sales The Australian 12:00am March 7, 2018 Michael Roddan   The corporate watchdog has revealed it is investigating the banking sector over its sale of predatory insurance for personal loans, after the sector failed to expand its add-on insurance reforms beyond credit card products. Appearing before a Productivity Commission hearing in Melbourne yesterday for its review of competition in the financial system, Australian Securities & Investments Commission head of insurance and credit Michael Saadat said the banking sector had more work to do to shore up its controversial consumer credit insurance businesses. In its revamped code of practice, the Australian Bankers’ Association has pledged to introduce a cooling-off period before tellers and salespeople could sell add-on insurance products with credit cards, which covers consumers if they get sick or lose their jobs. An investigation by ASIC found many consumers were not aware they had been...
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CBA traders ‘had co-ordinated approach to BBSW exposure’ The Australian 12:00am March 6, 2018 Ben Butler   Traders at the treasury and markets divisions of Australia’s biggest lender, Commonwealth Bank, agreed on a “co-ordinated ­approach” to managing exposure to the benchmark bank bill swap rate, according to Federal Court documents. An email recording the agreement between the two parts of the bank is contained in documents filed with the court by the corporate regulator, which is pursuing CBA for allegedly rigging or ­attempting to rig the BBSW six times in 2012. A schedule of particulars, filed by the Australian Securities & Investments Commission late on Friday afternoon and made available ­yesterday, also includes excerpts of ­conversations between CBA traders discussing whether they wanted the rate to set high or low. A CBA spokesman said the bank “disputes the allegations made by ASIC as we do not believe our employees have engaged...
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Banking royal commission: National Australia Bank probing its mortgage introducer program The Australian 12:00am March 6, 2018 Richard Gluyas   National Australia Bank has started further disciplinary investigations into its mortgage introducer program that is set to be examined by the financial services royal commission, according to the ­Finance Sector Union. The FSU yesterday applied to represent members before the royal commission in relation to the NAB program and a further case study involving add-on insurance products sold by Commonwealth Bank for home loans, personal loans and credit cards. The hearings will begin next Tuesday, lasting until March 23. NAB’s review of its continuing introducer program, which rewards businesses for lending ­referrals to the bank, originally identified about 2300 home loans since 2013 that may have been submitted without accurate customer information or documentation. About 20 employees were sacked and 35 were disciplined. The FSU said none of the affected employees...
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Financial advisers will be under scrutiny and some are fleeing big firms as a result The New Daily10:45pm, Mar 5, 2018 Rod Myer   The prospect of coming under the glare of the royal commission appears to be sending a shudder through the advisory sector, particularly among the major financial houses. Research from Bell Potter reported by Independent Financial Advisors, a trade press publication, found that AMP, ANZ, Commonwealth Bank, IOOF, NAB and Westpac had lost a cumulative total of 87 advisers during February. For the year to February, Bell Potter found that the big five finance houses lost a total of 804 for the last year, Bell Potter analyst financial services Lafitani Sotiriou said in an email to subscribers. “AMP was particularly bad, notching its second worst month in the last year at -46 in February, which given the company is spending ~$80 million a year buying advisers and advisers’...
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Wealth next in firing line as Royal Commission sets cracking pace The Australian 11:58am March 5, 2018 Richard Gluyas   The Hayne royal commission’s first round of public hearings starts on Tuesday next week but the game has already moved on. The word on the street is that the commission’s dreaded notices to produce documents have started to fall like autumn leaves on the nation’s wealth and superannuation businesses. If consumer lending is the focus of the March 13-23 hearings, it looks like wealth is next in the firing line. There are early indications that a second round of hearings has been slotted in for April. Hayne, assisted by senior counsel assisting Rowena Orr and Michael Hodge, has set a cracking early pace, as exhausted legal teams struggle to keep up with the ceaseless churn of documents retrieved from the major banks’ vast data bases. One bank has already ripped through...
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AUSTRALIAN BANKS SELLING INTEREST ONLY LOANS TO 80% OF LOAN BOOKS ITS CALLED ASSET-STRIPPING.  Stripping older people of their own homes where five years before they had no debt.  Most of these people are on low incomes.  The paucity of truthful data is a key part of any PONZI financing racket. We know from speaking with Broker agents of banks and bank officers and managers across Australia, that the main product being promoted by Major Banks for well over a decade is INTEREST ONLY LOANS. Sellers tell me they sell very few full docs.   IO LOANS therefore are likely to be a corresponding  80% of loan books as that is the main product being SOLD.   APRA is receiving without question, FAKE STATS.  Loan Books – residential INV stand at $1.9 Trillion – other reports suggest $1.6Trillion.  80% of that figure is not $569 billion.  Martin North needs to ask APRA to release...
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Problem IO Loans Close To Home – The $100 Billion Problem Digital Finance Analytics (Blog)4 March 2018 Martin North  Sellers of mortgages tell us they are encouraged to sell INTEREST ONLY loans and sell around 8O%.  Martin North needs to question APRA, that its suggestion of a 40% problem is ridiculous as banks managers and broker agents of the bank explain across Australia, the amount SOLD per year is $167 million and therefore 80% of $1.9 Trillion loan book – well you do the math…………………….Sellers telling the truth but yes the Banks are the liars!!!  APRA being fed FAKE STATS by the Banks   [Click headline to view video presentation.} Today we discuss which post codes will be most impacted by the interest only mortgage loan reset issue, and update our estimates of the number and value of loans likely to be impacted. This received media coverage in the AFR and the Australian over the...
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Hayne inquiry could find issues are 'systemic' Australian Financial ReviewMar 4 2018 11:00 PM Sally Patten   Two weeks of hearings kick off on Tuesday week in which the financial services royal commission will start to probe misconduct by the banks. The hearings will focus on credit products such as mortgages, car finance and credit cards and "the arrangements and practices of banking and financial services providers and their intermediaries". The poor conduct, as far as we know, includes fraudulent home loan applications at National Australia Bank and Aussie Home Loans, which is owned by Commonwealth Bank of Australia, car financing deals by Westpac and ANZ Banking Group, unsuitable credit card limit increases at Westpac, credit card fees at Citi, add-on insurance products sold by CBA and unsuitable overdrafts and administration problems at both ANZ and CBA. It appears that much of the time will be spent re-examining disputes that have...
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Australia loaded up on debt but peak has passed: OECD The Australian 10:53pm March 4, 2018 David Uren   Australian governments have added more to their debt over the past five years than almost any other advanced country, but market analysts say the borrowing peak has passed. The OECD’s annual review of sovereign borrowing shows that new debt contracted by federal and state governments since 2012 has been equal to 12 per cent of GDP. The only advanced countries to have raised more in that period are Spain, Slovenia and ­Latvia. The OECD warns that countries should be using the current economic strength to improve their debt position. “Public finances need to be managed prudently during more favourable times to ensure that there is sufficient room for fiscal manoeuvre when needed, without putting public finances on an unsustainable path,’’ it said. “This is particularly relevant given the rise in the stock...
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