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BFCSA
MORTGAGE
DISTRESS SOS

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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To all mortgage brokers, BDMs and loan approval officers! 
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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.
Banking royal commission may trigger credit crunch, flatten house prices Australian Financial Review Apr 5 2018 6:01 PM James Frost   One of Australia's biggest lenders has warned against a return to manual home loan assessments saying it would raise interest rates while a leading bank analyst has warned of a looming credit crunch. Westpac CEO Brian Hartzer told attendees at The Australian Financial Review Banking & Wealth Summit said any move to step back from automated decision making would be an overreaction and have immediate impact on borrowers. "It's going to have a consequence for cost and efficiency. It's going to have a consequence for the availability of credit and that is most likely going to hit the people who are at the lower end of the spectrum," Mr Hartzer said. The spectre of tighter lending standards has been flagged by the Hayne royal commission which spent two weeks exploring...
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https://www.accc.gov.au/speech/synchronised-swimming-versus-competition-in-banking  Rod Sims on why the banks are a cartel (except he won't say 'cartel') Extract from ACCC Chairman Rod Sims’ speech at the AFR Banking and Wealth Summit today. Sounds to me like a pretty good description of a cartel:  … Internal documents reviewed by the ACCC reveal a lack of vigorous price competition between the five Inquiry Banks (ANZ, Commonwealth, NAB, Westpac and Macquarie), and the big four banks in particular. In fact, their behaviour more resembles synchronised swimming than it does vigorous competition.  What we found is that the pricing behaviour of the Inquiry Banks appears more consistent with ‘accommodating’ a shared interest in avoiding the disruption of mutually beneficial pricing outcomes, rather than vying for market share by offering the lowest interest rates.  This manifests in at least four ways:  The big four banks largely focus on each other when they determine headline interest rates and discounts...
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  The Treasurer Scott Morrison and APRA’s Wayne Byres might point out the wrongdoing Commissioner Kenneth Haynes’ Royal Commission is exposing ‘is going over old ground’ that they described at AFRs Comprehensive Banking & Wealth Summit  Scott and Wayne would do worse than meet those ripped off customers, like myself. I have found no avenue to seek ‘access to justice’ or a fair or reasonable outcome from all the reviews, investigations and inquiries undertaken over the years  My direct coal-face experience with 22 Senior Managers inside CBA is to continue to see them kicking the can down the road. For all the talk, culture inside CBA, has not changed for the better in my cases 9 year duration. CBA are a pure disgrace given the extent they go to CoverUP fraud and forgery I have shown them.  CBA have refused every request for mediation and refused Financial Hardship through the 9...
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BFCSA: How arrogant is Treasurer Morrison? "The Government knew about, Big Bank Bad Behaviour! Nothing New" Nothing new in bank royal commission revelations: Scott Morrison Australian Financial ReviewApr 4 2018 6:33 PM Aaron Patrick   The banking industry royal commission hasn't uncovered bad behaviour that the government didn't know about, Treasurer Scott Morrison said, raising doubts about the usefulness of an inquiry that could cost the economy half a billion dollars. Mr Morrison said government agencies had already started dealing with the problems identified by commissioner Kenneth Hayne, which include low-level corruption, kick backs and poor lending standards. No top bank executive has lost their job because of information exposed by the inquiry, which will cost each of the big four banks an estimated $100 million each, mostly in legal fees, and could cost the government $70 million. "Other agencies certainly have addressed many issues being raised. I think that will...
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Reserve Bank of Australia anxious on Trump's borrowing binge John Kehoe   Reserve Bank of Australia governor Philip Lowe errs on the side of caution when commenting on politics, so it was notable that he expressed veiled concerns about US President Donald Trump's policies in Tuesday's prepared statement on local monetary policy. The politically astute Lowe, of course, did not explicitly mention Trump by name. It would be an odds-on bet that the volatile President's international shockwaves from binge borrowing and China trade tensions were discussed behind closed doors at Sydney's Martin Place when RBA board members met this week and opted to hold the overnight cash rate steady at 1.5 per cent. The best new insight from Lowe's statement was his noting of the "tightening of conditions in US dollar short-term money markets, with US dollar short-term interest rates increasing for reasons other than the increase in the federal funds...
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CBA rushed to shut down junk insurance The Australian 12:00am April 4, 2018 Michael Roddan   The banking royal commission’s focus on junk insurance sold by Commonwealth Bank sparked sudden deliberations between new chief executive Matt Comyn and the bank’s retail product manager about how to stop selling the product. Documents tendered to the royal commission reveal the internal discussions between the fledgling chief executive and Clive van Horen, executive general manager of retail products, who were forced to quickly announce the closure of its troublesome consumer credit insurance business ahead of hearings for Kenneth Hayne’s royal commission. An email from Mr van Horen to Mr Comyn, then in his last weeks as head of the retail division at the nation’s largest bank, reveals the bank quickly reacted to a witness statement submitted to the royal commission by an aggrieved customer who was sold useless credit card insurance by a branch...
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AUSTRAC chief denies CBA was blindsided on money laundering allegations Australian Financial Review Apr 4 2018 2:58 PM Joyce Moullakis   AUSTRAC chief Nicole Rose has signalled a preference to settle legal matters out of court, as the agency prepares for mediation with Commonwealth Bank of Australia over a spate of allegations it facilitated money laundering and terrorist financing. Speaking at The Australian Financial Review Banking & Wealth Summit on Wednesday, Ms Rose shied away from directly commenting on the CBA legal case but rejected the bank's claims it had been blindsided by some of AUSTRAC's allegations to the court. "I don't believe that's AUSTRAC's point of view," she said. "It would be unusual for them to be surprised by such serious enforcement action. Of course there are always incidents where law enforcement, under cover come across criminal behaviour that we may not have been aware of." Ms Rose was responding...
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APRA chairman Wayne Byres reveals flaws in banker pay Australian Financial Review Apr 4 2018 12:06 PM Jonathan Shapiro   The chairman of the prudential regulator says pay structures of executives at the nation's largest institutions have allowed them to avoid punishment for poor outcomes, undermining efforts to ensure financial stability. The "carrots are large and the sticks are brittle" for senior executives, Australian Prudential Regulation Authority chairman Wayne Byres told The Australian Financial Review Banking & Wealth Summit as he announced a review executive remuneration of 12 financial institutions. "Not only are rewards generous, but there are seemingly few repercussions for poor outcomes," he said in a keynote address. The review covered 280 senior roles across the banking, insurance and superannuation sectors between 2014 and 2016. Mr Byres said there was "considerable room for improvement". Lack of accountability "There has been limited evidence of material financial consequences for senior executives...
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Round Two: Financial advice from banks, AMP to fall under Hayne’s steely eye The Australian 12:00am April 4, 2018 Richard Gluyas   The financial services royal commission has drawn up an extensive list of agenda items for its second round of public hearings on financial advice and all the major banks and AMP are to be fed through the wringer. The hearings, to be held from April 16 to 27, will consider: the conduct of financial services ­entities that provide financial advice to consumers; compliance with the law and community ­standards; and the adequacy of the current legal and regulatory structure. The Australian Competition and Consumer Commission, as well as the two professional ­organisations for financial planners and the privately owned Dover dealer group with an estimated $3 billion in funds under management, will give evidence on the profession’s disciplinary regime. National Australia Bank and ANZ Bank, along with its Millenium3-aligned...
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New ASIC Chief Shipton: "Bankers aren’t Knights of the Round Table." Cricket penalties for the finance sector - now that would be news The Australian 12:00am April 2, 2018   Adam Creighton   The contrast with the corporate world couldn’t be greater. Indeed, if the cricket world penalised wrongdoing in the same way corporate cheating is treated, cricket fans themselves would have copped the fine for ball tampering. When business people cheat, the companies they work for are punished, which is a weak disincentive. Blaming companies ­obfuscates bad individual behaviour. Fining companies punishes shareholders. If the cricketing framework were applied in financial services, for instance, a royal commission into misconduct wouldn’t have happened. It’s a pity the cricket saga ­exploded a few weeks after James Shipton’s first speech as head of the corporate watchdog ASIC, where he lamented a growing “trust deficit” in finance. “There are high levels of trust in...
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Australia shirking on foreign aid: Tim Costello The Australian 10:50am April 2, 2018 Rachel Baxendale   World Vision Australia chief advocate Tim Costello has called for Australia to lift our foreign aid funding ahead of the May federal budget, warning that the books are being balanced at the expense of the world’s poorest people. With foreign aid levels at their lowest in Australia’s history, Foreign Minister Julie Bishop has dismissed reports that the Department of Foreign Affairs and Trade has modelled cuts, saying there will be no reduction to foreign aid. Mr Costello said he was “very concerned” by the modelling. “I’m very reassured by Julie Bishop saying that,” he told ABC radio. “What Australians maybe don’t understand is that we cut aid, Australian aid, by $11 billion in the (2014) Abbott-Hockey budget. “In other words, 20 per cent of all the savings they made in that budget came from the...
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APRA rejected CBA home loan data as inaccurate and incomplete Australian Financial ReviewApr 2 2018 11:00 PM James Frost   Commonwealth Bank was being pressured by the prudential regulator to appoint external consultants and fix its flawed home lending data almost 2½ years before the Hayne royal commission began exposing the big four for sloppy administrative errors and irresponsible lending. The Australian Prudential Regulation Authority's frustration with the failure of Australia's biggest home lender to accurately identify what proportion of its loans were taken out by property investors and its level of exposure to big borrowers has been revealed in evidence tendered to the banking royal commission and published in a massive dump of more than 100 documents late last week. A confidential internal catalogue of risks prepared for Commonwealth Bank's board in July 2016 shows the bank was dealing with a spiralling list of concerns ranging from poor data controls...
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Banking Royal Commission exposes shocking corruption – but must be extended two years -    Deregulation has helped parts of the financial industry to become captured by fraudsters. Faked pay slips, forged documents and cash-stuffed envelopes used as bribes to secure loans are just some of the examples of dodgy practices exposed so far by the banking royal commission. But before you think “some people will do anything to get a mortgage”, it’s crucial to remember that the people creating and engineering these frauds were actually at the top of the banking system.  The evidence paints a picture of an industry captured by people being recruited by Major Banks to sell what looked like innocent mortgages on commission-driven schemes to dish out ever bigger mortgages to borrowers who cannot afford them.   Over 80% of the loan books are Interest Only loans.  If you think that we are immune from the United States GFC Crash and...
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   FOR THOSE WHO WISH TO READ THIS EXTRAORDINARY REPORT - THE PLAN TO GIVE THE BANKERS THE GREEN LIGHT TO RUSH INTO SUB PRIME LENDING IN AUSTRALIA in 2001 and then the  2003 REPORT https://coolabahcapital.files.wordpress.com/2016/10/2003austpmtaskforcereport-1.pdf There is Volume 2 and 3  in this link........................  Denise Brailey...
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ASIC REPORT 59 Equity release products November 2005    Equity release products http://download.asic.gov.au/media/1337312/Equity_release_report_exec_summary.pdf   Page 8  - Regulation   Products The existing regulatory system was not designed  to address the issues raised by equity release products,which take the form of a credit arrangement but neverthelesshave some of the attributes of an investment product.   At the product level, the principal vehicle for regulation of credit, the Uniform Consumer Credit Code (UCCC), does not provide for disclosure of risk, nor provide a mechanism for disclosing elements of the cost of the product, such as the forgoing of equity, that are not translatable into an interest rate. Finally it will not apply at all where the funds obtained are to be used for investment purposes.   The principal vehicle for the regulation of investment products, the Corporations Act 2001 (Corporations Act), has limited application to some home reversion and shared appreciation products, depending...
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Summary of Findings for The Prime Ministerial Task Force on Home Ownership Vol. 1, 2 & 3 Reports Commissioned by The Menzies Research Centre for the Prime Minister’s Home Ownership Task Force Christopher Joye (Cambridge University), Andrew Caplin (New York University), Peter Butt (Sydney University), Edward Glaeser (Harvard University), Michael Kuczynski (Cambridge University), Joshua Gans (University of Melbourne), Stephen King (University of Melbourne), David Moloney (Booz Allen & Hamilton) and Alastair Bor (Booz Allen & Hamilton)   Chairman’s Preface The three reports published herein have been commissioned by the Menzies Research Centre as part of its Home Ownership Task Force which was undertaken at the suggestion of the Prime Minister in September 2003. No part of the Australian dream is more instinctively human than the desire to own our own home. In recent years, however, that worthy ambition has become harder for many Australians to attain. This is not a function of...
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HOW MALCOLM TURNBULL HELPED PUMPED UP JOHN HOWARD'S HOUSE PRICE BUBBLE   THIS IS THE SUMMARY OF THE 2003 REPORT “…it makes no sense whatsoever for the average Australian family to have to tie up over two-thirds of all their wealth in the world in one highly illiquid and very risky asset: viz., the owner-occupied residence. …we find that one in four families lose money (in real terms) when they come to sell the roof over their heads. For roughly one in ten dwellers, the situation is even more dire – these poor souls are subject to real price declines in excess of 13.4 percent.” – Summary of Findings for The Prime Ministerial Task Force on Home Ownership, 2003 Australian economics and political forums are full of good-hearted, well-meaning types, who argue passionately, and often cogently, for the need for policy changes to enable lower house prices. Criticism of the Howard Government’s...
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How Malcolm Turnbull helped pump Howard’s House Price Bubble https://barnabyisright.com/tag/malcolm-turnbull/  Click the LINK and read the LIST OF NAMES   Page 12 For centuries now, businesses in need of funds have been able to avail themselves of both debt and equity. Yet for households who aspire to expand, mortgage finance has been their one and only option. And so, despite the ever-growing sophistication of corporate capital markets, consumers around the world are forced to use only the crudest of financial instruments.3 3 This begs the question as to the absence of equity finance in the first instance. One answer instantly offers itself: securitisation. In the past, it was not practicable for a single unsponsored entity to go around gobbling up interests in individual properties in the vain hope that they could bundle these contracts into something that would look like a regulated holding. Fortunately, there has been spectacular progress of late...
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APRA faces pressure on liar loans The Australian 12:00am March 29, 2018 Michael Roddan   The banking regulator has repeatedly dodged questions from politicians who want to know why it overlooked “systemic” risks in the mortgage lending sector that have been uncovered in the first two weeks of the royal commission. Appearing before the powerful House of Representatives economics committee yesterday, APRA chairman Wayne Byres said much of the bad behaviour unearthed during the first two weeks of formal hearings at the royal commission fell under the responsibility of the corporate regulator, the Australian Securities & Investments Commission. Liberal MP Sarah Henderson, chair of the economics committee, asked Mr Byres repeatedly whether the Australian Prudential Regulation Authority could have been doing “a better job” of monitoring questionable behaviour including mortgage fraud at the nation’s major banks. Mr Byres said APRA was not responsible for policing much of the conduct at the...
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ASIC builds more legal muscle, with Daniel Crennan appointed enforcement commissioner The Australian 1:28pm March 28, 2018 John Durie   Daniel Crennan’s appointment as ASIC deputy chair has attracted wideranging support for both his own credentials and the concept of bringing external commercial legal experience into the regulator. The QC’s appointment, together with other changes introduced by Financial Services Minister Kelly O’Dwyer, came as the corporate plod updated its budget for this financial year with a bill of $238 million to be paid for by industry, depending on how much of its time is taken up looking after the sector. ASIC will be funded roughly two thirds by industry and the rest by government, with a direct levy on the different sectors. By way of example listed companies will have to pay $33.9 million, which works out at around $4,000 each, while banks will have to pay at least another $22.6...
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Corporate debt, interest rates and political uncertainty spook global markets Australian Financial Review Mar 28 2018 4:30 PM Karen Maley   How's this for a toxic cocktail for global sharemarkets? Take high levels of corporate leverage, add in rising interest rates and a large dollop of political uncertainty, and it's a recipe guaranteed to shake investor confidence. Let's take each of these ingredients in turn. Close to a year ago, the International Monetary Fund warned that US corporate debt had ballooned to levels exceeded those prevailing just before the global financial crisis, as US firms had taken advantage of ultra-low interest rates to load up on debt. The IMF warned that elevated corporate debt levels could cause problems down the track, as the US central bank continued to push short-term interest rates higher. But the warning went completely unheeded, as easy credit conditions spurred a fresh round of corporate debt raising...
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Project Group collapse just the first of many in overheated market, subbies warn Australian Financial Review Mar 28 2018 2:25 PM Michael Bleby   The collapse of builder Project Group is the first of many to come in the overheated Victorian construction market, according to subcontractors membership group Subbies United. Conditions that triggered Melbourne-based Project Group to go into voluntary administration last week, such as fixed fees and rising costs, were catching up with head contractors and would trigger the failure of other companies, Subbies United adviser Rob Berry said. "I think it's the start of many," said Mr Berry, who estimated Project Group's debts would more than double from the administrator's preliminary estimate of $22 million to about $50 million. "Prices are escalating. [Builders] are on a fixed-contract price. Their margins are disappearing and going into negative margin and it's catching up with them." The construction industry failures that had,...
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CBA report detailed compliance issues with Aussie Home Loans The Australian 12:00am March 28, 2018 Richard Gluyas   An internal Commonwealth Bank audit report last year identified a range of compliance issues with the bank’s Aussie Home Loans business, including a failure to ­enforce key CBA policies that the broker was contractually bound to observe. The nine-page report, which was released as an exhibit yesterday by the financial services royal commission, rated the control ­environment for Aussie as “marginal”, or unchanged since 2014. While the report recognised that CBA management under home-buying boss Dan Huggins was taking “significant” steps to improve assurance activities, it said the assessment should extend to employee due diligence, customer identification requirements including “know your customer”, and various assurance procedures over individual brokers. “Home buying do not have sufficient oversight of aggregators to confirm they are meeting key legislative requirements they are required to perform on behalf...
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'Systemic risks': RBA hits back on housing loan speed limits Sydney Morning Herald 27 March 2018 1:59pm Clancy Yeates   The Reserve Bank has hit back at criticism of the regulatory crackdown on the home loan market, saying such curbs were needed to contain "systemic risks" caused by a slide in lending standards. The Productivity Commission last month took aim at speed limits imposed on lending to property investors in 2014, and 2017 caps on interest-only lending, saying the policies were a "blunt intervention with detrimental effects on market competition". The commission's draft report on competition in finance said regulators were putting too much emphasis on stability, and argued the watchdog's loan caps had boosted big bank profits while making it harder for smaller banks to compete. In a submission to the commission lodged last week, the RBA stood by the loan caps - known as "macroprudential" policies - which have...
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Just how shabby are the big banks' loan books? Australian Financial ReviewMar 27 2018 5:33 PM Karen Maley   Bank shareholders, many of whom have followed the Hayne royal commission's public hearings with avid interest, remain deeply divided about one key question: Are the banks' poor lending practices confined to small pockets of their loan books, or is a sizeable chunk of the banks' assets of dubious quality? Unfortunately, senior executives at the big four banks proved to be of little help in answering this question. They are so petrified of attracting the attention of the Hayne royal commission, and of possibly being called to testify before it, that none were prepared to comment on the record about the quality of their loan books. The National Australia Bank showed the most courage, telling The Australian Financial Review that a NAB spokesperson could be quoted as saying that "we are comfortable with...
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