GLOBAL SUB-PRIME CRISIS

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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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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.
Negative gearing is only part of the problem...INTEREST ONLY LOW DOCS are the sub prime generator of selling homes to people who cannot afford to buy. Steve Keen stated property was 40% overvalued when the GFC hit and it was for those who had low doc loans approved and had to sell.. APRA’s guide was banks only had to insure 40% of their loan portfolios. It’s just going to mean more recycling of properties which is exactly how a PONZI works!   7.30 Report does the investor bubble By Unconventional Economist in Australian Property at 12:27 pm on April 6, 2017 | 52 comments   By Leith van Onselen https://www.macrobusiness.com.au/2017/04/7-30-report-investor-bubble/   ABC’s 7.30 Report last night ran a segment on how first home buyers (FHBs) are becoming casualties of Australia’s specufestor bubble. The segment features a property developer, Pat Singh, basically telling FHBs to  do whatever they can to enter the...
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read the comments...... David Murray warns of 1890s housing crash depression By Houses and Holes in Australian Economy, Australian Property, MB fund at 4:51 am on April 5, 2017 | 167 comments https://www.macrobusiness.com.au/2017/04/david-murray-warns-of-1890s-housing-crash-depression/ God bless David Murray. Somehow this goes virtually unreported today: The chairman of the government’s Financial System Inquiry, former Future Fund chairman David Murray, yesterday sounded a further alarm on the housing boom, saying a crisis on the scale of the 1890s great property collapse could not be ruled out. “What people should do is look at the 1890s, which was caused by a housing land boom,” he told The Australian. “To say it won’t happen and simply ignore it is wrong.” Half of the nation’s banks closed their doors following the 1890s crash. “Many people say a crisis has a low probability of ­occurrence, but the problem with that view is that whatever the probability, the severity...
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About 10 per cent of the loans in a standard prime RMBS mortgage pool are low-doc loans. the average life of an RMBS is substantially shorter than its final legal maturity, which is usually set to occur after the longest dated loan in the underlying portfolio is due to be repaid in full, and is typically around 30 years. The expected life at issue of most RMBS is typically two to five years. The most common form of enhancement comes from splitting the asset- by the loan originator or another bank.   Asset Securitisation in Australia   http://www.rba.gov.au/publications/fsr/2004/sep/pdf/0904-1.pdf   Page 7 The loans can be financed initially on or off the originator’s balance sheet. Banks and other deposit-taking institutions generally opt for the former and periodically sell a pool of loans to an SPV to be securitised. Mortgage originators tend to do the latter, finding interim funding for the loans from...
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Malcolm Turnbull backs RBA warning as household debt hits new record Australian Financial Review Apr 5 2017 11:00 PM Jacob Greber   Household debt is rocketing towards 190 per cent of disposable incomes, ramping up pressure on the Reserve Bank of Australia and regulators to take action that avoids a US-style debt crisis. Prime Minister Malcolm Turnbull endorsed Reserve Bank governor Philip Lowe's warning that household debt is rising too fast and linked the high burden of servicing loans to the need for the Commonwealth to manage its debt. A key reason for maintaining the government's AAA credit rating is that credit agencies assume Canberra will bail out any banks that are blind-sided by a housing crisis. "All of the warnings that the Reserve Bank and APRA have made about rising levels of debt are well made," Mr Turnbull said in Sydney on Wednesday. "That's their job, the system is working....
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APRA plays Santa Claus for bank CEOs Sydney Morning Herald April 5 2017 - 5:19pm Michael Pascoe   Hats off to Westpac CEO Brian Hartzer for the use of understatement by declaring Australian Prudential Regulation Authority's (APRA) alleged crackdown on real estate investors wouldn't have "any particular profitability impact". Boosting profits by a few billion tends not to hurt. And higher profits tend to lead to higher bonuses. APRA is playing Santa Claus for bank CEOs. No toasting of any gullible media though, who swallowed the line that investor fervour would be noticeably cooled by reducing the proportion of new interest-only loans from 40 per cent to 30 per cent. Good for banks that will charge higher rates to encourage a proportion of investor customers to switch to principal-and-interest loans, negligible impact on the size of the investor book that can continue to grow by up to 10 per cent a...
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Fortune favours the strong: Behind APRA's move on mortgages Australian Financial Review Apr 5 2017 5:40 PM Wayne Byres This is an edited transcript of the speech given by APRA chairman Wayne Byres at the AFR Banking and Wealth Summit in Sydney on Wednesday April 5, 2017.   Thank you for the opportunity to be part of the third AFR Banking & Wealth Summit. I've titled my remarks today with the Latin phrase, fortis fortuna adiuvat. Over the years, this has been interpreted in a number of ways – often as fortune favours the brave or fortune favours the bold. However, as a prudential regulator, I am attracted to an earlier interpretation: fortune favours the strong. As a proverb from Roman times, it remains highly relevant today. In the past few days, there has been a great deal of attention given to our recent announcement on additional measures to strengthen one...
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Background of the Sub-Prime crisis and GFC written 2011 This is just an Australian blog but ....wow   What ASIC fails to disclose (and ASIC is always going on about adequate disclosure) is that Medcraft was involved in ALL aspects of the securitisation industry in the period when the sub-prime securities were originated, manufactured and distributed. Again what ASIC fails to disclose (and ASIC is always going on about adequate disclosure) is that Medcraft's forum represented and he had a relationship with ALL of the manufacturers of sub-prime assets, including Lehman Brothers.   Greg Medcraft – Head of ASIC runs with the hares and hunts with the hounds. This entry was posted on Tuesday, November 22nd, 2011 at 5:45 am and is filed under ARTICLES. Report : Ted Baxter Content : ASIC Greg Medcraft, Australian Securitisation Forum, Societe Generale, recent GFC news. Tuesday, 22nd November 2011 http://www.commonwealthbankdeception.com/?p=34 In a tragic twist of...
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APRA drops housing capital bombshell Australian Financial ReviewApr 5 2017 11:00 PM Jonathan Shapiro, James Thomson   Australia's banks could be forced to raise billions of dollars more capital after the prudential regulator warned they may have concentrated too much of their lending in increasingly risky and highly priced housing. Wayne Byres, the chair of the Australian Prudential Regulation Authority, said the watchdog needed to resolve the way the banks' allocate capital to home loans, as he announced a strategic review into property lending. "If we are going to put an increasing number of eggs into a single basket, we'd better make sure that basket is an unquestionably strong one," Mr Byres said told The Australian Financial Review's Banking & Wealth Summit. The unexpected intervention came only days after APRA told the banks it would introduce lending limits on interest-only loans, a move he described as a "tactical response" to an...
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    APRA PREPARES FOR HOUSING DEBT SHOCK but Banks have ignored warnings for over a decade and will continue to do so. The Interest O
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ASIC's Greg Medcraft is on a mission to avoid a US sub-prime repeat Australian Financial ReviewApr 3 2017 11:00 PM Jonathan Shapiro, Jacob Greber   The chair of the corporate watchdog is leading a crackdown on home lending practices in order to avoid the mistakes that led to the 2008 house price crash in the United States. Greg Medcraft, who is in the final months of his tenure as the chair of the Australian Securities and Investments Commission, will target lenders and brokers that are encouraging borrowers to take on riskier and "more expensive" interest-only loans and lenders that have understated living expenses of borrowers when assessing their ability to afford a loan. "We want to make sure we don't have a surge in defaults when rates go up, and the misery that comes with that," Mr Medcraft told The Australian Financial Review. Mr Medcraft, who says he witnessed the trauma...
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RBA says Australian Banks handing out 'too many interest only unaffordable home loans'    The Reserve Bank has warned housing loans are outpacing household incomes  RBA boss said banks have issued too many loans and are putting economy at risk Treasurer Scott Morrison made housing affordability key part of second budget Turnbull government has fought off suggestions of reducing tax concessions  By Australian Associated Press PUBLISHED: 10:51 +10:00, 5 April 2017 | UPDATED: 11:18 +10:00, 5 April 2017   The Reserve Bank of Australia boss has warned of rising household debt levels with banks across the country handing out 'too many' loans. In a post-board meeting on Tuesday, RBA governor Phil Lowe said growth in home loans is continuing to outpace growth incomes and is putting the 'future health of the Australian economy at risk'. Treasurer Scott Morrison has made housing affordability a key component of his second budget to be released on May 9 as...
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From the TEN NETWORK - THE PROJECT April 4th   LINDSAY DAVID L F Economics Interview A Housing Bubble is when housing loans climb higher than the house is worth.  A long time splurge in gratuitous mortgage loans and low interest rates, tax concessions etc, lead to an artificial over inflation of prices and the BUBBLE BURSTS.  People mortgaged to the eyeballs are forced to place home on the market and then a flood of homes enter the FOR SALE space at same time causing housing prices to FALL and leading to RECESSION. Catherine Cashmore: "we are absolutely in a Bubble..." Heidi whomever....calls herself an "expert"  She says "NO burst bubble..... as the INDUSTRY IS HIGHLY REGULATED and the regulators are really just starting to investigate the types of lending that happens."   Which Planet is Heidi on?  Must be dating a regulator. APRA wrote to the Banks last Friday and asked...
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Bloxham bedazzled by $$$ signs!   One-eyed Bloxo only sees supply-side By Unconventional Economist in Australian Property at 1:35 pm on April 4, 2017 | 11 comments By Leith van Onselen https://www.macrobusiness.com.au/2017/04/one-eyed-bloxo-sees-supply-side/ Why is it that so many of Australia’s mainstream economists, as well as the Coalition, only sees solutions to Australia’s housing affordability woes on the supply-side of the housing market, while ignoring the role of demand-side policy? A case in point is the following drivel from HSBC chief economist, Paul Bloxham: Although [Melbourne] detached house prices are up by a strong 60 per cent over the past five years, apartment prices have only risen by 20 per cent… This contrast between Melbourne houses and apartments helps to answer the bubble question. The root cause of the rise in housing prices is that demand has outstripped supply. But in the case of Melbourne apartments, adequate supply has been brought to...
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Dear Subscriber, Very good news. The government jettisoned its plan to sell the ASIC database just before Christmas. It is a win for new media, and a win for the public, which is an endorsement of your support for this independent journalism website. Thank you. This means transparency for multinationals may remain poor but is unlikely to get any worse. We could not have done it without your support: tweeting, facebooking, emailing, and providing financial contributions to keep the website going.   We began hammering away about this boring but important ASIC story last July. GetUp got a petition going and drew 80,000 signatures. Six months later the government canned it.     “Close to extortion” said Small Business Ombudsman Kate Carnell today, following our investigations of big business screwing suppliers with onerous terms. Thanks to a number of stories on our website,   the government has identified late payments as...
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Denise L Brailey RBA's new Governor Philip Lowe is either a dunderhead or corrupt.  He cannot have an each way bet.  Over 90% of all loans written last year are INTEREST ONLY LOW DOCs.  Government is lying when its says "only 40%."  Sellers tell us we were only selling LOW DOCs and: "we did not know they were interest only, now we are realising what has been going on.  We have been misled and now the banks want to claw back the commissions.  We have been used.  We were told to practice on our parents first!  Now their home is in danger. How dare this moron call borrower victims "DESPERADO's" RBA's Philip Lowe takes aim at desperado borrowers.  This high powered banker KNOWS consumers have been the target of Rip-Off bank merchants.  Now he chooses quite deliberately to mislead the public into thinking its all the borrowers who devised this PONZI...
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RBA's Lowe takes aim at desperado borrowers Australian Financial Review Apr 4 2017 8:49 PM Jacob Greber   Reserve Bank of Australia governor Philip Lowe has warned too many banks are giving loans to badly stretched borrowers, increasing the risk of a wave of defaults if even small shocks hit the economy. In a clear shot at both state and federal governments, Dr Lowe also insisted that boosting supply is the only real way to break the trend of house prices outpacing incomes and that the latest regulatory crackdown on lending is only a stop-gap measure. "Too many loans are still made where the borrower has the skinniest of income buffers after interest payments," Dr Lowe said late on Tuesday. The remarks came after the Reserve Bank left the cash rate steady at 1.5 per cent for a seventh-straight meeting – effectively trapped by the need to avoid adding more fuel...
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APRA interest-only crackdown a blip for lenders The Australian 12:00am April 5, 2017 Michael Bennet   The banking regulator’s latest steps to rein in interest-only lending to homebuyers have been dubbed largely irrelevant to bank profitability, amid warnings of a train wreck in coming years as borrowers struggle to ­refinance. About 83 per cent of interest-only loan holders expected to roll their mortgage to another interest-only loan, which typically lasted for five years before borrowers had to start paying principal, and keep doing so, researcher Digital Finance Analytics said. It said 669,000 households, or 21.8 per cent of borrowers, were experiencing some mortgage stress, up 1.5 per cent from the previous month, after stagnant income growth and recent out-of-cycle interest rate increases by the banks. Morgan Stanley strategist Chris Nicol said mortgage repayments could “step up” between 50 per cent and 70 per cent when interest-only loans switched to principle and...
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Property developers pull back on apartment projects The Australian 12:00am April 5, 2017 Lisa Allen, Ben Wilmot   Property developers are shedding major apartment sites along the eastern seaboard as banks tighten lending to oversupplied areas, with some projects ditched by their long-standing promoters. Tougher lending rules have slugged the market, with investors unable to borrow as much to buy units and banks refusing to lend to foreign purchasers, stalling apartment projects. Foreign developers drove the wave of luxury apartment towers in Sydney, Brisbane and Melbourne, but some are now taking their capital out of the market as conditions turn. “Money is tight, the banks have switched off the taps,” said one major Sydney apartment ­developer. Melbourne financier Andrew Schwartz, the group managing director of Qualitas, said developers had been pulling back on projects for 18 months. “Finance is definitely harder to obtain — project finance — banks are credit rationing...
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Mortgage crackdown to crimp borrowing capacity Australian Financial Review Apr 4 2017 11:00 PM Jonathan Shapiro, James Frost   A mortgage lending crackdown could cut in half the amount a typical household can borrow once higher living expenses and greater interest rate buffers are applied. A typical couple with an existing mortgage would see borrowing capacity reduced from $450,000 to about $235,000, according to Fitch Ratings, which presented a worked example to clients in 2016. The analysis was in anticipation of tougher lending standards that would require lenders to assume higher interest rates and living expenses when writing mortgages. It shows that tougher enforcement of responsible lending has the potential to pull credit out of the system by dampening the borrowing capacity of households keen to get a foothold into a rising market. It follows steps announced by the Australian Securities and Investments Commission to up its surveillance of lenders and...
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'Pretty close to extortion': Mars, Kellogg's and Fonterra pushing loans on small business Sydney Morning Herald April 5 2017 - 6:24am Cara Waters   Massive brands including Mars, Kellogg's and Fonterra have been accused of extortion-like behaviour by the small business and family enterprise ombudsman. In the course of Kate Carnell's inquiry into payment times she has uncovered a pattern of global giants pushing out payments to small businesses and then offering the same small businesses loans to keep them afloat. "It's pretty close to extortion really," Carnell said. "Large multinational businesses' payment terms have blown out considerably. They are now moving to have standard contractual payment times of up to 120 days. It's really bad for midsize businesses and a shocker for the SME space. It will kill SMEs." The clincher comes when small businesses struggle to survive while waiting up to 120 days to be paid for their products...
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BFCSA bothered to take three weeks intense work and send in SUBMISSION # 23 the Senate Inquiry into Penalties for White Collar Crime March 2016 To our knowledge no victims were called as witnesses, no hearings took place. Yet committee led by Williams? looked through the subs and concluded we are happy with penalties the way they are!!!!!! They reported as such: 4.36 The Banking & Finance Consumers Support Association (BFCSA) pointed to the Icelandic example of prosecuting and, in many cases, imprisoning executive officers of banks and financial institutions in the aftermath of the global financial crisis (GFC). According to the BFCSA, the use of custodial sentences in Iceland has served as a powerful deterrent to would-be white-collar criminals in the Icelandic banking sector. The BFCSA submitted that a similar 'zero tolerance' approach, and the use of 'tough penalties' (along with improved enforcement and a better understanding of predatory lending,...
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ASIC's Greg Medcraft is on a mission to avoid a US sub-prime repeat Australian Financial ReviewApr 3 2017 11:00 PM Jonathan Shapiro, Jacob Greber  READ comments from DENISE BRAILEY  www.facebook.com/BFCSA   The chair of the corporate watchdog is leading a crackdown on home lending practices in order to avoid the mistakes that led to the 2008 house price crash in the United States. Greg Medcraft, who is in the final months of his tenure as the chair of the Australian Securities and Investments Commission, will target lenders and brokers that are encouraging borrowers to take on riskier and "more expensive" interest-only loans and lenders that have understated living expenses of borrowers when assessing their ability to afford a loan. "We want to make sure we don't have a surge in defaults when rates go up, and the misery that comes with that," Mr Medcraft told The Australian Financial Review. Mr Medcraft,...
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    BFCSA: Crooked Corp Cop Greg Medcraft still blaming Sellers for ROBO Approved INTEREST ONLY LOANS DISASTER. He is the Chairman of
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CHANNEL TEN THE PROJECT - TONIGHT Guest: Lindsay David L F Economics.   Do Not Miss this one re: THE BANKS and toxic INTEREST ONLY Sub Prime LOANS..................Australian Banks...
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Housing curbs reflect genuine concerns, says ABA's Anna Bligh Australian Financial Review Apr 3 2017 11:00 PM James Eyers   New Australian Bankers' Association chief executive Anna Bligh says it won't be her Labor background that helps the banks fend off a royal commission but actions that convince customers they are valued as much as shareholders. The former Queensland premier has also backed moves by financial regulators targeting interest-only loans, saying they have presumably acted on "genuine and well-evidenced concerns". Just a few hours into her first day on Monday as boss of the banking industry association, Ms Bligh warned that political pressure on the sector isn't going to abate any time soon because it reflects real customer anger that has resulted in an "erosion of trust" in the industry. "I think the public want to see action and I know the government wants to see more action from banks," she...
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VIDEO: Twelve Months of Investigations, Impact and Outrage By Scilla Alecci Apr 3, 2017 https://panamapapers.icij.org/20170403-anniversary-fundraising-campaign.html   One year ago, ICIJ launched the biggest investigation in journalism history: the Panama Papers. ICIJ and more than 100 media partners published hundreds of stories revealing the offshore financial secrets of many of the world’s richest and most powerful people. The investigation sparked protests, resignations, arrests and fierce debate around the world. And that was just the beginning.   Where Are They Now? A Year Later, Mixed Fortunes For Panama Papers Line-Up By Will Fitzgibbon Apr 3, 2017 https://panamapapers.icij.org/20170403-anniversary-where-are-they-now.html   When the International Consortium of Investigative Journalists and more than 100 media partners began publishing the Panama Papers investigation on April 3, 2016, almost no country was untouched by its revelations. Governments in more than 70 countries have launched over 150 investigations, inquiries, audits and probes into the affairs of thousands of people and corporations...
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One Nation co-founder David Ettridge accuses party of abandoning him with legal debt AM By Michael Edwards Updated about 2 hours agoTue 4 Apr 2017, 10:09am http://www.abc.net.au/news/2017-04-04/one-nation-co-founder-accuses-party-of-abandoning-him/8412890   Watch the Four Corners episode on ABC iView.    Video: Dane Sorensen says if the public knew how One Nation operated they would not want anything to do with the party David Ettridge, a co-founder of One Nation, has accused the party of abandoning him with huge debts from when he was jailed alongside Pauline Hanson. In 2003, Mr Ettridge and Ms Hanson were imprisoned for electoral fraud but released months later after their convictions were quashed by a Queensland Court. Mr Ettridge said his legal ordeal cost him his house and his personal wealth. He told the ABC's Four Corners program he had sought compensation from One Nation — joining a number of former officials and candidates speaking out about the party's administration....
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