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BFCSA
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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.
Property prices must drop by half, says expert Australian Broker27 Mar 2017 Miklos Bolza     Sydney's house prices need to be slashed in half and the average property value needs to decline by more than 35% to deal with the affordable housing crisis, according to a leading property analyst. Michael Matusik, who runs a consultancy in Brisbane, said this decrease in house prices was necessary to ensure an affordable ratio of average household income to median house price. While the accepted housing affordability benchmark puts dwelling prices at three or four times the average household income, Matusik took into account differences between various locales, adjusting this to six times for Sydney and Melbourne, five times for south east Queensland, Canberra and Perth, and four times for the rest of Australia. This means that house prices in Sydney would have to fall by $602,000, or 47%, to reach an affordable price...
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CBA to mortgage brokers: Beat rivals by churning Australian Financial Review Mar 26 2017 5:17 PM Duncan Hughes   Commonwealth Bank of Australia is encouraging brokers to churn mortgages rather than lose borrowers to competitors who are offering hot incentives to switch lenders, analysis of offers reveals. It comes as new strategies from major and smaller lenders rapidly emerge in response to changing regulatory, funding and marketing pressures, according to bankers and market analysts. CBA has written to brokers with clients concerned about rising rates to consider seven alternative strategies involving its existing product range. "With the introduction of new reference [interest] rates for investment home loans and the change to rates for interest-only investment home loans, you may see an increase in customers wanting to switch product types or change their repayment type," the bank stated in a memo to mortgage brokers. The memo went on to outline alternative loan...
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WHAT A CROCK FROM THESE BANKS!!!   Government needs to get very tough with these evil Bankers or suffer the mass wrath of Consumers who have been targeted and stung by Banks.   Bankers told Parliament they had not lowered lending practices.  Bankers then admit from 22 Inquiries: "we may have done that $1.6 Trillion Times." Now Banks say: We will lift our lending standards (not really) BUT because we will not meet our usual $40 billion profit per year (4 Major Banks), made from our ingenious asset stripping programs, we will now punish the punters who pay for our DODGY LOANS.  We will now hit the dumb customers who are on low incomes and pensions with INTEREST RATE RISES!!  Ha ha ha............................ "we are happy little Banker Boys as bright as bright can be....etc"   Interest rate hikes ‘threaten financial system’ The Australian 12:00am March 27, 2017 Michael Roddan   Rising interest rates for property investors are increasingly...
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No move on payday lenders three months after reform pledge Sydney Morning Herald March 27 2017 - 12:15am Patrick Hatch   Vulnerable Australians are still being sucked into paying extortionate interest rates on payday loans and leased household goods, three months after the government pledged to pull the industry into line, consumer groups say.   A government-commissioned review last year found some customers were paying interest rates equivalent to 884 per cent on goods through lease-to-buy agreements, with one customer paying $3042 for a clothes dryer worth $345. Revenue and Financial Services Minister Kelly O'Dwyer pledged in November to implement 21 of the review's 24 recommendations in part or in full. They included capping consumer lease fees at 4 per cent of the products' base price per month for a maximum of 48 months, and limiting payday loan repayments to 10 per cent of the borrower's income. Gerard Brody, chief executive...
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Looming budget black hole caused by housing crisis Retirees forced on to a pension due to white collar crime in banking and finance. Jessica Irvine 23 March 2017 http://www.smh.com.au/business/looming-budget-black-hole-caused-by-housing-crisis-20170322-gv3lt1.html   The federal budget has a multibillion-dollar hole in it because successive governments have failed to account for how declining home ownership will force more future retirees onto the aged pension. Super nest eggs are being increasingly eroded by rental payments or mortgage payments for the increasing proportion of retirees who do not own their homes outright, a report released on Thursday by the Australian Institute of Superannuation Trustees warns. Economist Saul Eslake says home ownership has long acted as the "fourth pillar" of the Australia's retirement system. Photo: Jesse Marlow   The report's author and independent economist, Saul Eslake, said home ownership had long acted as the "fourth pillar" of the Australia's retirement system, alongside superannuation, the age pension and voluntary...
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 L F ECONOMICS report on  The Great Australian Housing Market Bubble and Government Action (and Inaction) Property Prices under LNP Howard Government rose 121%.  A fascinating aspect of the Great Australian Housing Market Bubble is that most of the price growth has occurred under LNP governments, not ALP. Although a small housing cycle occurred during the late 1980s on the back of the enormous commercial and industrial real estate bubble, it deflated slowly throughout the early 1990s recession, reaching a cyclical trough during the mid-1990s.   From 1986 Q2 to 1996 Q1, housing prices, adjusted for inflation and quality, increased by a paltry 9.1% over the course of the ALP government. This amounts to a less than 1% annual increase in housing prices over a decade-long period.   Enter the Howard government. Prices escalated by 121.4% between 1996 Q1 and 2007 Q4, driven by the exponential increase in mortgage debt. While...
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APRA should have been more diligent on monitoring data!  F for fail!  Problem for APRA,  they have simply been passing on Bank stats to Treasury and banks lie all the time as to true stats.  So we end up with FAKE STATS and DATA.     New Bank data on investor loans 'may' prompt APRA action 26 March 2017 http://www.abc.net.au/news/2017-03-26/trump-administration-dominates-markets-apra-tightens-investment/8386974   Locally is also a bit light-on in terms of fresh data, although February's Reserve Bank's private sector credit survey (Friday) will be keenly watched given investor lending for property appears to have slipped from under the bank regulator's thumb and is growing rapidly again. APRA has bluntly told the big banks they are running near the 10 per cent annual growth speed limit for investor loans. The banks responded by jacking up mortgage rates — particularly for investors — and tightening lending rules. Another spurt could see the lending speed...
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Unpaid superannuation ‘far worse’ than first thought 23 March 2017 Jackson Stiles http://thenewdaily.com.au/money/superannuation/2017/03/23/unpaid-superannuation/   Senate committee has been told that the devastating problem of unpaid superannuation is at least $2 billion worse than previous estimates. Back in December, a joint Industry Super Australia (ISA) and Cbus report exploded into the headlines by estimating that bosses had ripped off 2.4 million workers to the tune of $3.6 billion worth of superannuation in the 2013-14 financial year – an average of $1489 per worker. ISA now believes even more workers were unpaid the superannuation they deserved, based on a revised estimate. A more realistic figure is 2.76 million workers owed $5.6 billion, ISA submitted to the Senate Standing Committee on Economics earlier in March. This updated figure, based on a slightly different measurement, works out to an average of $2025 per affected person, which ISA said was “unacceptable”. ISA had originally projected that...
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March 24, 2017 6.14am AEDT   https://theconversation.com/vital-signs-if-it-looks-like-a-bubble-and-sounds-like-a-bubble-75050   Vital Signs is a weekly economic wrap from UNSW economics professor and Harvard PhD Richard Holden (@profholden). Vital Signs aims to contextualise weekly economic events and cut through the noise of the data affecting global economies. This week: Australia’s housing obsession continues, and it’s difficult to assess the future path of interest rates. I didn’t think it was possible for there to be more focus on the Australian housing market than in 2016, but the last couple of weeks have proved me wrong. ABS figures revealed that in the December quarter, across the eight major Australian cities, house prices rose 8.9% and apartment prices rose 4%. Those are stunning figures, particularly on the back of the huge rises of recent years. This prompted renewed discussion about whether prices constituted a bubble. Many players weighed in, but former Liberal Party leader John Hewson put...
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What about owner-occupiers who ‘think’ they are repaying interest and principle?  But really   are paying Interest Only for 30 years....so will never ever own their own home.     If Dodgy Bankers do not do TOP UPs every two years, within five years loans will run into   default. Incomes will not support P & I.     CBA, ANZ, St George join rush to raise home loan interest rates By business reporter Stephen Letts Updated about 11 hours ago   http://www.abc.net.au/news/2017-03-24/anz-joins-the-rush-to-raise-home-loan-interest-rates/8383924   Commonwealth Bank, ANZ and St George have joined NAB and Westpac in another out-of-cycle increase in mortgage rates for investment and owner-occupier loans. ANZ has lifted investor home loans for existing customers by 25 basis points to 6.85 per cent from March, while existing owner-occupiers making interest-only repayments will see their rates rise by 2 basis points to 5.45 per cent in July. Owner-occupiers repaying interest and...
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BANKS ON NOTICE: How banks lost the ear of Britain’s government over Brexit By Andrew MacAskill, Anjuli Davies and Huw Jones Filed March 24, 2017, 10:45 a.m. GMT http://www.reuters.com/investigates/special-report/britain-eu-banks/?utm_source=Twitter&utm_medium=Social Banks used to have a cosy relationship with Britain’s government. Now they say they are struggling to be heard as the country prepares to leave the EU. LONDON - One afternoon in mid-January, Prime Minister Theresa May walked into a meeting room in the Swiss resort of Davos to face Wall Street’s most powerful bankers. May had delivered her vision two days earlier for pulling Britain out of the European Union’s single market. Now the Wall Street banks, fearing Britain was headed for trouble, wanted to hear more about her strategy. At stake was London’s future as a global financial centre. Among those present were Lloyd Blankfein, chief executive of Goldman Sachs, Jamie Dimon, chief executive of JPMorgan Chase, and James Gorman,...
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ASIC’s CommInsure pass shows why badly behaving bankers will never fear jail time March 24, 2017 10.46am AEDT   https://theconversation.com/asics-comminsure-pass-shows-why-badly-behaving-bankers-will-never-fear-jail-time-75059   In October 2014, the Australian Securities and Investments Commission (ASIC) Chairman, Greg Medcraft, was pretty forthright This is a bit of a paradise, Australia, for white collar criminals. Just a day later, reportedly after a phone call with Finance Minister Senator Mathias Cormann, he attempted to clarify his remarks. I correct that. Basically the point is that we want to make sure we don’t become a paradise. But as with much of what it has tried to do in the past five years, ASIC has been spectacularly unsuccessful, aiding the creation of a white-collar paradise, rather than hindering it. But what would a white-collar hell hole look like? Mr Medcraft, gives us his perspective: The thing that scares white-collar criminals is going to jail and that’s what scares them everywhere...
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One Billion in STORM VICTIM claims settled under duress for $34 million - what a disgrace. Big battle and small result and ASIC did nothing once again. Consumer Protection is a SHAM   Ironically, one of the committee members to oversee the inquiry is the controversial One Nation senator Rodney Culleton. Culleton, who has hitherto been one of the more strident advocates of a Royal Commission, is also a client of Levitt Robinson which, in December 2015, had his bankruptcy annulled, smoothing his path to the Senate   Revealed: CBA’s secret deal with Storm victims’ lawyer September 5, 2016 http://www.michaelwest.com.au/revealed-cbas-secret-deal-with-storm-victims-lawyer/ The Commonwealth Bank secretly struck a deal with class action lawyers for Storm Financial Group which left victims in a $1 billion claim against the bank with a return of just $34 million. Of that $34 million in compensation for Australia’s most devastating financial scandal, legal fees came to almost $10 million....
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Australian housing bubble’s great pro-cyclical blowoff   By Houses and Holes in Australian Economy, Australian Property at 12:20 am on March 24, 2017 | 61 comments   I’ve been tracking the Great Australian Housing Bubble for a decade and more but I have never before seen what is transpiring today. We are in a true volcanic blowoff now as pro-cyclical fiscal, monetary and population growth explode prices higher. The epicentre is Sydney and Melbourne:     Where fiscal incentives and a variety of state sponsored fiddles are are driving an huge investor blowoff:     APRA and the RBA are far behind the curve yet are too terrified to tighten. There is no chance of RBA rate hikes as the economy withers in the shadow of this huge mushroom cloud. Unemployment and inflation do not allow it. Macroprudential is coming but it is too late and regulatory timidity virtually ensures it...
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Turnbull under pressure as crossbench, Greens join forces for banking commission Adele Ferguson and Sarah Danckert 22 Mar 2017, 2:06 p.m. http://www.theherald.com.au/story/4546549/turnbull-under-pressure-as-crossbench-greens-join-forces-for-banking-commission/   Pressure is building for a commission of inquiry into Australia's scandal-plagued banking system after the Senate crossbench threw its weight behind a Greens bill to establish one. The private member's bill is co-sponsored by Greens senator Peter Whish-Wilson and crossbenchers Nick Xenophon, Jacqui Lambie, Derryn Hinch and the current One Nation senators after extensive discussions between them during the past few months over the terms of reference for the inquiry. The Labor Party is also expected to support the bill, which was tabled on Tuesday afternoon, while Nationals senator John Williams has confirmed he will cross the floor to vote for it. Senator Williams is a long-time supporter of a royal commission into the banks. The move follows stiff resistance from the government against a royal commission into...
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Property bubble called by economist and former Liberal leader John Hewson ABC News23 March 2017 12:50pm Michael Janda business reporter   Australia's housing market is in a bubble caused by the "neglect and drift" of successive state and federal governments, economist and former Liberal leader John Hewson has concluded. Speaking as part of a panel during a Lateline special on housing affordability, Dr Hewson said national economic data conclusively showed evidence of a housing bubble. "I think it's a crisis, it is a bubble. I know people are hesitant in saying that, it is a bubble," he said. "House prices have gone up 250 per cent since the middle '90s in real terms. "Household debt is more than 200 per cent of disposal income, 120 per cent of GDP, and it stands as a monument really to neglect and drift by both levels of government." Dr Hewson is not the first one to...
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Australia’s housing bubble smashes all records Macro Business12:20 am on March 22, 2017 Leith van Onselen   The ABS yesterday released its property price data for the December quarter, which valued Australia’s dwelling stock owned by households at a record $6.11 trillion dollars. As shown below, the total value of Australia’s dwelling stock was an all-time high 7.5 times incomes as at December 2016, up from 7.1 times incomes a year prior:   Similarly, the ratio of dwelling values against Australian GDP hit a record 3.6 times as at December 2016, up from 3.5 times GDP a year prior: When divided by Australia’s population, Australian housing was worth a record $252,000 per man, women and child: Australia’s house prices are also showing a record divergence from rents: In fact, since Australian house values bottomed in September 2012, prices have risen by 34% in real terms versus only a 1% increase in...
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Fintechs like Hashching cash in on bank lending limits to curb property boom Australian Financial Review Mar 23 2017 4:29 PM James Eyers   As regulators weigh new limits on bank lending to cool the housing boom, their impact may be muted as tech-savvy borrowers turn to fintechs to access cheaper rates offered by non-bank lenders. Hashching is raising $6 million of fresh equity on the Neu Capital fundraising platform in a deal valuing the Sydney-based start-up – which gives borrowers access to the best interest rates negotiated by mortgage brokers – at $40 million. Since it was set up in August 2015, Hashching has received applications for $5 billion of home loans, which has doubled in the last five months. Around 20 per cent of loans are made to property investors. On the platform, borrowers are increasingly turning to loans from non-bank lenders who are undercutting the big banks on price, said Hashching...
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Banks may need up to $40b for risk weightings Australian Financial Review Mar 23 2017 11:00 PM James Frost   Higher risk weightings designed to slow the rate of property price growth being considered by the regulator may require banks to hold up to $40 billion in additional capital against loans to property investors, weighing heavily on return on equity and bank profits. The risk weighting for home loans is currently 25 per cent regardless of whether the loans are for owner occupiers or higher risk property investors. Veteran CLSA bank analyst Brian Johnson believes that a 10 percentage point move in the risk weightings for investor home loans will require the big four to hold an additional $5.3 billion in capital. He says that a move in the risk weighting of this magnitude will require an additional $900 million from ANZ, $1.5 billion from Commonwealth Bank, $1.2 billion from NAB...
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ASIC’s Kell takes aim at CommInsure’s ‘outdated’ life policies The Australian 12:00am March 24, 2017 Michael Roddan, Ben Butler   The Australian Securities & Investments Commission deputy chairman Peter Kell has hit out at exemptions for life insurers from consumer protection regulations, after current weak laws hamstrung the corporate watchdog’s investigation into Commonwealth Bank’s Comm­Insure division. ASIC’s review of CommInsure, which yesterday cleared the company of allegations it pressured doctors to deny claims, failed to interview any customers as part of its investigation. That was despite Mr Kell noting some had “highly distressing experiences” after the insurer denied claims by using out-of-date medical definitions. CommInsure has since backdated its heart attack definitions to 2014. Claims-handling practices are currently exempt from financial services conduct laws which require efficiency, honesty and fairness in company dealings — an exemption ASIC is pushing hard to overturn. Despite the short six-page report giving an overall clean...
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  John 'Wacka' Williams to cross floor on banks probe Australian Financial Review Mar 23 2017 7:01 PM Belinda Merhab (AAP)   Days after revealing his battle with Parkinson's disease, John "Wacka" Williams has vowed not to bow out of federal parliament a hypocrite. The Nationals senator, an outspoken critic of bad behaviour in the banking sector, will cross the floor to support a private Greens bill to establish a rare form of parliamentary inquiry into the banking and financial services sector. "All I want to do when I leave this place in a bit over two years' time is to see this sector cleaned up, see ASIC doing their job better, see people getting good financial advice, to have confidence in their institutions," he told parliament on Thursday. "I'm not going to leave this place in a bit over two years' time saying that at some stage I made a...
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Units resold at a loss in Brisbane, Melbourne The Australian 12:00am March 23, 2017 Turi Condon   Losses on the wave of new apartments are starting to mount with a hefty 60 per cent of units bought off the plan in inner Melbourne since 2011 breaking even at best or reselling at a loss, while inner Brisbane saw 40 per cent of resales tread water or lose money, according to new research from BIS Oxford Economics. Sydney has yet to feel much impact from the unit-building boom, with only 4 per cent of resales made at the purchase price or below. The research comes amid warnings from regulators, bankers and economists over stratospheric housing price growth in Sydney and Melbourne, amid expectations that investors will face a tougher times as lending criteria continue to tighten and investor mortgage rates rise. In Brisbane, property veteran Kevin Seymour’s company examined pockets of the inner city...
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Sydney mortgage holders carrying huge debt loads   By Guest in Australian Property at 12:06 am on March 22, 2017 | 0 comments http://www.macrobusiness.com.au/2017/03/sydney-mortgage-holders-carrying-huge-debt-loads/   By Martin North, cross-posted from the Digital Finance Analytics blog: We have updated our core market model with household survey data this week. One interesting dynamic is the LTI metrics across the portfolio. We calculate the dynamic LTI, based on current income and loan outstanding.  This is not the same a Debt Servicing Ratio (DSR), and is less impacted by changes in mortgage rates. It is also a better measure of risk than Loan To Value (LVR) LTI has started to become an important measure of how stretched households are. For example the Bank of England issued a recommendation to the PRA and the Financial Conduct Authority (FCA) advising that they should ‘ensure that mortgage lenders do not extend more than 15% of their total number...
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NEW ASIC REPORT FURTHER EVIDENCE OF NEED FOR A ROYAL COMMISSION     Posted by Katy Gallagher · March 17, 2017 3:10 PM http://www.katygallagher.net/media The corporate watchdog has released yet another scathing report into the big financial advice firms, finding that they have not done enough to report misbehaviour by their financial advisers. Only one week ago the CEOs of the big four banks lined up in Canberra to reassure community that the banks were changing their ways, however, the ASIC report paints a very different picture.                    Key findings of the report released today include: Failure to notify ASIC about serious non-compliance concerns regarding adviser conduct; Significant delays between the institution first becoming aware of the misconduct and reporting it to ASIC; Inadequate background and reference-checking processes; and Inadequate audit processes to assess whether the advice complied with the "best interest" duty and other obligations. ASIC also noted: “…many of the...
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Fed Chair Yellen Repeats “Alternative facts” from New York Times on financial crash   By Pam Martens and Russ Martens: March 20, 2017 http://wallstreetonparade.com/2017/03/fed-chair-yellen-repeats-alternative-facts-from-new-york-times-on-financial-crash/ Last Wednesday Janet Yellen, the Chair of the Federal Reserve (the central bank of the United States) regurgitated the notoriously fake information that has been spewing from columnists at the New York Times since 2012 on the causes of the epic Wall Street financial crash of 2007 to 2010. Yellen was taking questions during her press conference on the Fed’s announcement of a rate hike. John Heltman, a reporter for American Banker, posed the following question to Yellen: Heltman: “The administration recently reiterated its support for reinstatement of Glass-Steagall. Treasury Secretary Munchin has called for a 21st Century Glass-Steagall. Keeping in mind that there’s no specifics on this proposal, is the fundamental idea of separating commercial banking from investment banking a fruitful line of inquiry. Is this...
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