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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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BFCSA: APRA boss Wayne Byres 'not declaring victory' even as investor lending drops 10pc. Banks swamped with ill-gotten profits

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APRA boss Wayne Byres 'not declaring victory' even as investor lending drops 10pc

Australian Financial Review Feb 9 2018 2:59 PM

Michael Bleby, James Eyers


Australia's top banking regulator refused to call an end to tighter credit restrictions that have slowed investor lending, even as new figures showed investor loans fell at their fastest yearly pace in 18 months in December.

In his first public comments since Treasurer Scott Morrison told The Australian Financial Review that macroprudential lending measures could be eased, APRA chairman Wayne Byres on Friday said banks' loan portfolios were improving but it was too soon to release the brakes on the temporary measures.

The environment of high dwelling prices, high household debt levels, low interest rates and weak wages growth that triggered the initial concerns and prompted the regulator to direct lenders to rein in riskier types of loans "hasn't changed greatly over the past 12 months", Mr Byres told the A50 Australian Economic Forum in Sydney, repeating a sentiment he last expressed in October.

"While the direction in asset quality is positive, we're not declaring victory just yet," Mr Byres said. "We still want to see that the improvements the industry has made are truly embedded into industry practice."

While Mr Byres' comments were a diplomatic reminder to Mr Morrison that any decisions on macroprudential easing were a bureaucratic, rather than political, call to make, he echoed the Treasurer's sentiment that the policy measures, which include a requirement that no more than 30 per cent of new lending can be on interest-only terms, were flexible.

"We can modify our interventions as more permanent measures come into play," Mr Byres said. "That will include, amongst other things, further strengthening of borrower serviceability assessments by lenders, strengthened capital requirements for mortgage lending imposed by us, and comprehensive credit reporting being mandated by the government." [And that bail-in bill you’re pushing, perchance? –RJB]

In a separate speech late on Thursday, Reserve Bank governor Philip Lowe said he hoped that curbs such as that on interest-only loans would be made permanent.

"When I talk to my overseas peers and say more than 40 per cent of new loans in the country were to borrowers who didn't have to make a single dollar of principal repayment, they say, how? Why would you allow that?" Dr Lowe told an economic forum hosted by Citi.

"It didn't feel right to me. It felt like it was building up risk in the system so that was addressed and I would hope there would be a permanent element of that."

The Productivity Commission said this week that the limits were anti-competitive and had delivered a $1 billion annual profit windfall to the major banks.

For now, the latest round of measures are still working.

Total investor loan commitments stood at $11.8 billion in December, down 2.6 per cent from November and nearly 10.5 per cent below the $13.2 billion total of a year earlier. The year-on-year decline was the biggest annual fall since June 2016 when APRA's first round of restrictions was still affecting lenders.

Friday's figures showed investor housing loan commitments made up 36 per cent of all loans, the lowest proportion since April 2016.

The weakness in loan volumes, concentrated on NSW and Victoria, explained the falling prices in the two largest cities, said JP Morgan economist Henry St John. Housing values in Sydney and Melbourne fell 0.9 per cent and 0.2 per cent respectively in January, CoreLogic figures show. "The final housing finance report for 2017 was unambiguously weak, corroborating some of the price adjustment seen in the Sydney and Melbourne property markets through December and January," Mr St John said.

Current restrictions are likely to continue to curb investor borrowing and dampen prices, Mr St John said. While December's yearly fall was the biggest since June 2016, at that stage, the pace of decline was easing – investor loans had fallen nearly 25 per cent year-on-year two months earlier in April – before ending completely and returning to strong growth.

The current slowdown, by contrast, hasn't yet peaked, he said.

"There is a close relationship with investor lending values and Sydney and Melbourne property prices through the housing cycle," Mr St John said. "It appears more likely that investor lending values will continue to moderate through [the first half of this year], gravitating towards the early 2016 cycle lows."


Before seasonal adjustments, the number of first home buyer loans fell to 9743, or 17.9 per cent of all loans, from November's eight-year high of 11,090. The value of loans to first home buyers for the year to December stood at $33.4 billion, the highest since the year to August 2010.

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