RESEARCH PAPER BY MONASH UNIVERSITY

Please read this, you will then see WHY Ms Denise Brailey has good cause to demand  a ROYAL COMMISSION on the Banking and finance industry and the use of the Broker Channel as agents for the Finance Provider.

Comment from Denise: "This piece is a good find Mort and keep going on the research.  The reality thinking according to bank input into Universities in 2008 does not show the Banks as Engineers.   BFCSA Members all know now - the culprits are the Bank Engineers and the Brokers did not  "fudged income figures" as first thought.   No-one was investigating the criminality of the banking sector.   All Banks and Non Bank Lenders invented and used Speedy the Calculator - to fudged the figures.....  Brokers were simply new recruits in a  high turnover industry, set on Quotas and instructed to simply following orders.  They were told "you are helping disadvantaged people get a better life" - a pre-planned bank strategy.  We will reveal the entire saga shortly....stay tuned).  Now read how the Bank tricked the Academics and Universities and Government into believing a lie: its all the Brokers fault.    Not even the Senators knew the Banks used Skippy the Computer to approve all mortgage loans - no humans involved.  It was automated fraud an a massive scale the likes of which Australia had never seen before and therefore did not fully appreciate the long term ramifications of letting this fraud run rampant.  Lenders were not "tarnished" by Brokers.  In 2004 Bankers only ever trained and employed the brokers.  Then in 2004 they cut them loose and told them they would now be "joint business partners" and keep them all as the Broker Channel for one reason: to keep them one removed from the Bankster dirty secrets of course!  What this document shows is that the Banks knew of the fraud and played it down WHY?  In the consumers' best interests?  Of course not!  They separated themselves as per the chart above circa 2004 to AVOID LIABILITY BUT STILL KEEP THE DICE ROLLING.........  Low Docs was a lucrative business: the Golden Goose!   By casting themselves aside they demonised the Broker to hide their own Engineering of the scam......................................and that is, Ladies and Gentleman: INTENTION TO DECEIVE and steal homes ON A MASSIVE SCALE. Then the banks could always blame the broker when they moved in for the kill.   If you are in that sphere then you need to read all this historical stuff and more...............   Then write your submissions to Parliament NOW - please flood the inbox with submissions                      This email address is being protected from spambots. You need JavaScript enabled to view it.  

Thanks to the diligence of:

You will find the full RESEARCH DOCUMENT at the bottom of this post/page, just click in the link, it will download in document form ready to be read and or printed.

22 pages is a bit much to post on here.

 When are lenders tainted by the fraud of a finance broker? 

The role of the finance broker is to survey a range of lenders and finance products and recommend to the borrower the combination that would best suit the borrower’s needs. The broker may also be responsible for managing the transaction, including submitting the loan application, delivering the loan documents to the borrower, assisting the borrower in completing those documents and even answering questions about the loan. Credit providers may also see advantages in relying on the services of a finance broker. In particular, brokers allow lenders access to borrowers without the costs associated with a branch presence.

The cases of broker fraud raise the need for care on the part of lenders who rely on brokers to facilitate loan transactions. Broker fraud may lead a lender into a transaction that is significantly more risky than the lender originally realised in a financial sense and also possibly in a legal sense. Generally, a lender will not have any knowledge of the broker fraud so as to be tainted by that conduct. However, in some cases there may be sufficient information in the documents provided to a lender by the broker or borrower to implicate the lender in the wrongdoing. Lenders may therefore be well-advised to develop procedures for monitoring broker facilitated transactions and verifying the information presented in relation to such dealings. There is also clearly a case for stronger regulation to protect borrowers in their dealings with brokers. However, the inexperience of borrowers who may use the services of brokers suggests that they may not be in a good position to monitor the conduct of brokers to ensure compliance with regulatory requirements. Legislative incentives, should also be provided to lenders engage in this process of monitoring

LINK:

www.consumer.vic.gov.au/library/publications/resources-and-education/research/when-are-lenders-tainted-by-the-fraud-of-a-finance-broker-2008.doc

Anyone feel like a lot of reading, there is a lot of links to Court Cases at the bottom of the document which may be of interest and worth posting on here highlights.

disclaimer:

Posted on this site for research purposes only.