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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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BFCSA Blog

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

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AMP still taking fees from the dead The Australian 12:00am September 18, 2018 Ben Butler, Michael Roddan   Scandal-ridden wealth giant AMP continues to charge dead people for life insurance, even after being told the customer has died, the banking royal commission has heard. The nation’s fifth-biggest ­financial services group discovered in April it was slugging the dead, after launching an investigation when CBA admitted similar sins to the commission. Yesterday’s admissions by AMP’s head of wealth management, Paul Sainsbury, made it the third financial services group after NAB and CBA whose graveyard sting has been exposed by the royal commission. AMP was also put through the wringer for charging superannuants higher life insurance premiums after wrongly assigning them status of “smoker”, and failing to give the customer enough opportunity to correct the record. Mr Sainsbury’s admissions join other shockwaves from the commission, with NAB’s head of wealth, Andrew Hagger, resigning...
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  Exit not so horrible for NAB’s $20m man Andrew Hagger The Australian 12:00am September 18, 2018 Michael Roddan, Ben Butler   NAB’s head of wealth Andrew Hagger will exit with redundancy payout of up to $796,000, as the highest-profile casualty so far of the banking royal commission. Mr Hagger, who has trousered more than $20 million over his decade at the bank, agreed to fall on his sword at the weekend after his evidence to the banking royal commission over his dealings with the corporate regulator during NAB’s fees-for-no-service scandal were lashed by counsel assisting, Michael Hodge QC. He is to be replaced as NAB’s most senior customer-facing executive by former NSW premier Mike Baird. Mr Baird will move from chief customer officer, corporate and institutional, to the same role at consumer banking. Mr Hagger’s is the first scalp from the big four claimed by royal commission hearings that have...
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Treasurer’s staff scrambles for aged-care fund details The Australian 12:00am September 18, 2018 Rick Morton   EXCLUSIVE  The Treasurer’s office has sought urgent advice from two government ministers about whether the Coalition cut $2 billion from direct aged-care funding and the dementia supplement, almost a week after cabinet signed off on a royal commission into aged care. On Sunday night, five hours after Scott Morrison was asked about cutting the Aged Care Funding Instrument, an email from Josh Frydenberg’s office was sent to Health Minister Greg Hunt and Aged Care Minister Ken Wyatt’s advisers seeking more ­answers. The Australian can reveal the Coalition has been considering a review of the ACFI, which would save between $3.3bn and $5.4bn over four years on top of the $2bn shaved off in 2015 and 2016 when Mr Morrison was treasurer. However, new Treasurer Mr Frydenberg was not across the ­detail of that policy, even...
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ASIC launches civil action against ANZ over 2015 capital raising Australian Financial Review Sep 14 2018 5:26 PM Jonathan Shapiro   The Australian Securities and Investments Commission is taking court action against ANZ Banking Group in relation to the controversial $2.5 billion equity capital raising in August 2015 that is the subject of a criminal cartel case. ASIC is claiming ANZ breached its continuous disclosure obligation by failing to inform the market that $791 million of the total $2.5 billion placement had been taken up by underwriters Deutsche Bank, Citigroup and JPMorgan, according to documents filed in Victoria's Federal Court on Friday. The documents highlight three separate conference calls between ANZ's then treasurer Rick Moscati and head of capital John Needham with the bank's underwriters Citigroup, Deutsche Bank and JPMorgan. During the calls the executives and bankers agreed to dispose of shares in certain ways, as well as consult if they...
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Josh Frydenberg slams ASIC for enabling 'culture of appalling conduct' Australian Financial Review Sep 14 2018 11:00 PM Phillip Coorey   EXCLUSIVE  Federal Treasurer Josh Frydenberg has slammed the past failures of the corporate regulator and promised new powers to speedily compensate victims of misconduct. Although awaiting the final recommendations of commissioner Kenneth Hayne's banking royal commission, Mr Frydenberg said he was likely to give ASIC new powers, including the power of remediation that was included in a capability review handed down in 2016. That means ASIC would be able to order companies who had wronged customers, such as AMP, to compensate them within a set timeframe, thus avoiding ASIC needing to take legal action. "Australians affected by financial misconduct deserve timely remediation," Mr Frydenberg told AFR Weekend. "A new ASIC remediation power as recommended by the ASIC Capability Review and accepted in principle by the government is one potential solution...
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When Guy Debelle had to wake the RBA governor to save the dollar Australian Financial Review Sep 15 2018 3:46 AM Karen Maley   In the weeks following the spectacular collapse of US investment bank Lehman Brothers, Reserve Bank of Australia officials were often woken from their sleep and forced to make big calls about spending millions to oil the wheels of paralysed currency markets. "My main memory of that time is that I didn't sleep for two months", recalls RBA deputy governor Guy Debelle, who in 2008 was responsible for running the central bank's financial market operations. At the time, most assumed the RBA's intervention in foreign currency markets was aimed at putting the brakes on the Australian dollar's precipitous decline. Ten years on, Debelle reveals this was not the case. Instead, the RBA wanted to narrow the yawning gap between the cost of buying and selling Australian dollars. The...
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GFC the catalyst for Macquarie transformation Australian Financial Review Sep 14 2018 10:45 PM Chanticleer (Tony Boyd)   The global financial crisis was the trigger for the most prolonged period of value destruction in the 49-year history of Macquarie Group, as well as being the catalyst for a transformation that is still paying shareholders in spades. A GFC-inspired share price plunge wiped $19 billion from the value of Macquarie between May 2007 and February 2009. This period of upheaval exposed a market-wide misunderstanding about how Macquarie worked. The bank had talked for years about the strength of its core risk management function leading into the GFC. But it was clear from the savage market reaction that investors did not understand what this meant. One person who capitalised on the lack of market knowledge about Macquarie was Jim Chanos, the founder of hedge fund Kynikos Associates in New York. In May 2007,...
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Low dole, high rent add up to housing stress in capitals The Australian 12:00am September 15, 2018 Rick Morton   EXCLUSIVE  Almost two-thirds of people on the dole who also receive commonwealth rent assistance are living in housing stress and a further quarter are paying more than half of their total income on rent, new data shows. The data released by the Department of Social Services shows the twin effects of the low value of the Newstart Allowance — which hasn’t risen in real terms for more than 20 years — and the high cost of rent in capital cities. The average rent assistance paid to someone on the unemployment benefit is $113 a fortnight, in addition to the payment itself, which is $539, and average rent is $452 for these recipients. Social Services Minister Paul Fletcher told The Australian this week that it was “simplistic” to say people on the...
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Royal commission: Insurer TAL launched dirt-digging campaign to deny mental illness claim ABC News13 September 2018 Stephanie Chalmers, Michael Janda   A nurse diagnosed with an anxiety disorder was followed by a private investigator, tracked on social media and bullied by insurer TAL, as part of its campaign to deny her income protection claim. The banking royal commission heard how a three-year dispute with TAL did not end when the Financial Service Ombudsman ordered the insurer to pay out her claim, with interest. Instead, staff within TAL stepped up efforts to discredit the claimant and ordered intense surveillance, which lasted at least four months. TAL executive Loraine van Eeden, who joined the company in January, was questioned about the case — which she repeatedly described as "inappropriate" — for several hours on Thursday. The customer at the centre of the case worked as a nurse and also cared for her partner,...
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Banking royal commission: ASIC comes under fire for light touch The Australian 12:00am September 14, 2018 Michael Roddan, Elizabeth Redman   Financial regulators are under pressure to sting crooked companies with larger fines and enforce the full extent of the law to deter misconduct, as the royal commission continues to uncover weak responses to corporate malfeasance. The Australian Securities & Investments Commission’s lacklustre action against Common­­wealth Bank, which had breached laws barring misleading and deceptive behaviour, was put under the spotlight yesterday as the Hayne inquiry continued to probe transgressions in the life insurance sector. In a day of shame for the life insurance industry, the royal commission revealed that insurer TAL paid tens of thousands of dollars to a private investigator to follow a woman’s “every move” after it failed to win a three-year battle to stop her from claiming on a mental health policy that the ­independent ombudsman had...
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How we staved off recession and the GFC Australian Financial ReviewSep 13 2018 11:00 PM Kevin Rudd   EXCLUSIVE  Lehman Brothers' eye-watering $US612 billion collapse was the single largest bankruptcy in US history. Global financial markets panicked, within 24 hours global capital flows literally froze and for the next month the world teetered on  the brink. These were white-knuckle times as we entered not just the Global Financial Crisis, but also the "great global recession" that followed. These were the events that would dominate the entire history of our government. In Australia we successfully navigated the GFC without losing a single financial institution – although we came perilously close in a number of cases – and without a single citizen losing their saving deposits. We also became the only major developed economy  to come through the great global recession unscathed. And despite the ocean of opportunistic conservative political commentary that has...
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Skye Capital Advisory crucial to debt deals the banks are too shy to touch Australian Financial ReviewSep 12 2018 11:00 PM Sarah Thompson, Anthony Macdonald   EXCLUSIVE  When a private equity firm wants to fund a big new Australian leveraged buyout, it no longer goes straight to the big four banks. Increasingly the big firms that do the big buyouts – such as The Carlyle Group, KKR and TPG Capital – are turning to US and European institutional investors to help fund takeovers or refinance portfolio companies because the capital-conscious big four typically cannot or do not want to offer the same quantum and terms for new loans. They're often part of the overall funding mix, but not front and centre as they once were. Instead more creative and nimble providers like HPS Investment Partners have stepped up to the plate. And the change – which has happened slowly over the...
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Freedom Insurance used every trick to trap customers The Australian 12:00am September 13, 2018 Michael Roddan, Elizabeth Redman   Freedom Insurance deployed every trick in the book to hold on to each dollar it siphoned from its unsuspecting victims, pitting staff against one another in a battle to dissuade the most determined customers from cancelling their policies and deducting the cost of an employee’s “seat”, which they had to earn back before they won bonuses. While sales of toxic funeral insurance policies, callously named “final expenses policies”, and accidental death insurance cover have soared in recent years for the fledgling company, so too have the busloads of victims calling up in vain to try to cancel policies. As Freedom chief operating ­officer Craig Orton was forced to take the stand in Melbourne’s Federal Court yesterday for a second day, counsel assisting the commission Rowena Orr QC ran over the extraordinary efforts...
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Banking royal commission: CBA rejected heart attack claims, misled ombudsman The Australian 12:00am September 13, 2018 Elizabeth Redman, Michael Roddan   Commonwealth Bank denied the claim of a life insurance customer who suffered a heart attack by using out-of-date medical definitions and then misled the Financial Ombudsman Service by covering up advice it had received from a doctor when the customer complained. CBA also ignored the ombudsman’s findings that it should apply an updated medical definition to the claim, in a series of repellent manoeuvres revealed by the financial services royal commission yesterday that the corporate watchdog labelled “serious misconduct” but failed to take action against. The royal commission also revealed how CBA routinely ignored the medical advice of its own employed doctors, including its chief medical officer Dr Benjamin Koh who blew the whistle on the company’s misconduct in 2016, to update its definition of heart attack, and routinely rejected...
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How CBA's penny pinching undermined its life insurance business Australian Financial Review Sep 12 2018 6:38 PM James Frost   Commonwealth Bank's decision not to update the medical definition for heart attack in line with global standards saved the bank $2.5 million but put it on a collision course with the public, the Hayne commission has heard. It was another dark day for the insurance industry on Wednesday as the commission highlighted a litany of denials and delays of claims by life insurers. Westpac was singled out for taking an average of 184 days to make good on its trauma policies. The penny pinching antics of Commonwealth Bank were however the main event, and counsel assisting the commission Rowena Orr, QC, took CommInsure's managing director Helen Troup through events that included the bank lowballing a heart attack victim and misleading the Financial Ombudsman Service. The bank was embroiled in a dispute...
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Banking royal commission: Sixth round rings with $6bn bang and a long list of admissions The Australian 3:18pm September 10, 2018 Michael Roddan, Elizabeth Redman   The royal commission has painfully detailed an almost endless chit list of misdemeanours by the country’s scandal-ridden life insurance sector, including more than $6 billion of commissions for advisers in five years, out-of-date medical definitions, pushy sales culture, unsolicited and misleading sales calls and secret surveillance that further deteriorated claimants’ mental health. Amid the mountain of alleged misconduct, counsel assisting the royal commission Rowena Orr, QC, told the hearing more than $6 billion in lucrative commissions had been paid to financial advisers for the sale of life insurance over the last five years by just 10 companies. This included $1.16 billion for National Australia Bank’s MLC business, almost $500 million by Commonwealth Bank, nearly $600m by Suncorp, $750m by Westpac, $700m for Hong Kong-based AIA...
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Voluntary super idea derided, but think it through The Australian 12:00am September 11, 2018 Adam Creighton Economics Editor   Former prime minister Paul Keating came out swinging last week after I wrote a column suggesting the idea of voluntary superannuation had so much going for it: higher wages, more choice, lower taxes, reduced financial parasitism and weakened vested interests. Notable commentators Alan Kohler and Terry McCrann saw merit in the idea, which was also popular with our readers. Keating, though, one of the architects of superannuation, said it would be a “national tragedy” if a system that had “transformed the Australian economy and was envied by the rest of the world” were “dismantled”. It certainly has transformed the living standards and job security of the financial services sector, which is bigger in Australia as a share of the economy than any other developed country. Who could doubt that it is envied...
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ASIC’s banks penalties fall short: committee The Australian 12:00am September 11, 2018 Cliona O’Dowd   A parliamentary committee has blasted the corporate regulator for letting the big banks off “scot-free” and neglecting to crack down on systemic failings in the financial system. In its review of the Australian Securities & Investments Commission’s 2017 annual report, the House of Representatives standing committee on economics cited “shocking examples of misconduct” exposed by the banking royal commission and criticised the regulator for not being tough enough and relying too much on enforceable undertakings. “Evidence provided to the royal commission has exposed parts of the financial sector as having a corporate culture motivated by greed and lacking in moral leadership,” the committee concluded.  “However, evidence of systemic failings also places the Australian Securities & Investments Commission (ASIC) in the spotlight because it is the regulator ­responsible for promoting investor and financial consumer trust and confidence,...
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RBA warns of vulnerability but says household debt crisis 'not imminent' Australian Financial Review Sep 10 2018 7:15 PM Patrick Commins   The explosion of mortgage debt has made Australian households, banks and the economy more vulnerable to a downturn, but with a robust economy and falling unemployment, the Reserve Bank remains confident that there are no immediate reasons for alarm. Reserve Bank of Australia assistant governor Michele Bullock, who heads the bank's financial stability department, in a speech on Monday provided a detailed picture of the rapid build-up in household debt since the early 1990s. The ratio of household debt to income has climbed to 190 per cent, from around 160 per cent five years ago, and from 70 per cent 30 years ago. Ms Bullock also noted that in a global context Australians have been particularly enthusiastic in their borrowing. In the early 1990s Australia had debt-to-income ratio lower...
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Sack them all, says ClearView insurance boss The Australian 12:00am September 11, 2018 Michael Roddan, Elizabeth Redman   ClearView chief risk officer Greg Martin called for his employees to be sacked after lashing the ASX-listed life insurer’s “full-on sales culture without much regard for customers” and admitting it had breached criminal anti-hawking laws more than 300,000 times. The royal commission heard that ClearView, which continues to be in the sights of the Australian Securities & Investments Commission over “systemic” failures in complying with laws designed to prevent spruikers forcing unwanted policies on customers, ran an outbound call centre where as much as 40 per cent of calls were non-compliant and targeted “poor” Australians with unnecessary policies. Senior counsel assisting the commission, Rowena Orr QC, kicked off the inquiry’s probe into the life insurance sector yesterday by detailing a stream of admissions of misconduct from the largest companies in the industry, pinning...
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Dodgy life insurance tactics in royal commission spotlight The Australian 12:00am September 10, 2018 Michael Roddan   EXCLUSIVE  Lucrative deals between some of the world’s largest life insurance underwriters and local companies that operate high-pressure outbound call centres are in the firing line of the royal commission and financial watchdogs. The royal commission will this week take aim at the fastest-growing slice of the life insurance industry, the “direct” channel, which draws in hundreds of millions in revenue each year. Despite the profitable revenue stream, which has brought about four million life insurance policies into force, large life insurers providing the underwriting for the policies hawked by outbound call centres have barely tracked how, or to whom, insurance was being sold. The Australian Securities & Investments Commission last month told life insurance companies to shut down outbound sales centres, the hallmark of the so-called “direct” insurance model, or face legal action....
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Mortgage stress is slowly on the rise Australian Financial Review Sep 9 2018 11:00 PM Su-Lin Tan   Mortgage stress has risen as a new record high level of household debt against income is set across Australia, new data by research and analysis group Digital Finance Analytics shows. The number of households at all levels of stress rose by 6000 in August to reach a total of 996,000 stressed households, according to DFA's analysis using 52,000 household surveys, public data from the Reserve Bank, APRA and ABS, as well as private data from lenders and mortgage aggregators. The majority of households – just under 80 per cent of all households – are mildly stressed although the biggest group of severely stressed mortgage holders are exclusive professionals and mature stable families, DFA says. Households are considered stressed when their cashflows cannot cover ongoing home ownership costs.Those who are mildly stressed have access...
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James Aitken's front row seat to the GFC circus Australian Financial Review Sep 9 2018 11:00 PM Jonathan Shapiro   One August evening in 2008, James Aitken got a call from a client – a portfolio manager at a large fixed income fund – giving him a very specific instruction. "Go to the cash machine and get some money out," he was told, twice. "RBS [Royal Bank of Scotland] is gone and I am not convinced money is going to be coming out of the ATMs tomorrow." So Aitken, based in London, went and did exactly that, drawing enough pounds sterling to last about three months. He never told his family. Few know exactly what happened behind the scenes at Royal Bank of Scotland, which had inflated its assets to become the world's biggest bank. It was later nationalised by the British government in an expensive £45 billion ($82 billion) bailout....
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Is a sledgehammer about to hit property investors? ABC News7 September 2018 3:10pm Stephen Letts   Investors have backed further out of the property market and there is no surprise there. That's been the trend since regulators started tightening the thumbscrews on the sector. In July investor lending fell another 1.3 per cent, to be down more than 15 per cent for the year. Owner-occupiers have been more resilient, with lending up 1.3 per cent over the month. But these figures are from July, well before the big banks started peddling their out-of-cycle mortgage rate hike. It's taken more than three years for the regulators to turn around the $1.5 trillion juggernaut that is the mortgage portfolio of Australia's big four banks. But the real target has been about a third of that, or $530 billion, that has been lent to investors. The impact has been obvious, a so-far fairly gentle...
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Investor home lending falls to lowest level in nine years in July Australian Financial Review Sep 7 2018 4:11 PM Michael Bleby   Investor home lending fell to its lowest level in nine years in July as banks tightened housing credit for investors, spurred by the banking royal commission and regulator APRA. While July was the month from which APRA ended its cap on investor loan growth,new mortgage commitments for investor borrowers fell 1.3 per cent from June to $10.2 billion, accounting for 32.6 per cent of all new loan commitments - the weakest level since August 2009 - official figures on Friday showed. "The underperformance in investor relative to owner-occupier lending is consistent with what we would expect in response to a tightening in lending standards, the consequence of both the Banking Royal Commission, and macroprudential policies," JP Morgan economist Henry St John said. NAB director of economics David de...
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