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BFCSA
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MORTGAGE
DISTRESS SOS
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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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Whistleblowers' Corner!
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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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BFCSA: APRA in Snoozeville! 35% of Mortgages a bit of a worry folks. RISK to ADI's? Ah yes.
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Now the true warnings are about to appear on mass as everyone ducks for cover. APRA has just woken up as to how Mortgage Fraud invades and destroys economies around the globe. Welcome to the real world Mr Laker and the new guy. Its been under your noses for 14 years..........Will you then say like American regulators: "we did not see this (GFC) coming? BFCSA kept sending out warnings backed by the date. ADI's is a fancy name for Major Banks.
These APRA figures have been ditto back 10 years!!!! 97% LVR loans and also INTEREST ONLY LOANS to ARIP's. Australian Regulators have been in SNOOZEVILLE for their ten year slumber party. Where does APRA get its figures from? THE BANKS of course. Then Naylor blurts out that regulators are certainly aware of these issues. Yes Phil and you were guilty of same covering up of true situation but now you admit YOU ALL KNEW. Time's up gentlemen. Your nasty little secrets will implode in the same way these toxic mortgages will explode across the economy.
APRA has had to be dragged screaming and kicking into the limelight by BFCSA Members. Waiting for default figures? That's clever when you KNOW these time-bomb loans have been kept in the dark room like mushrooms - stockpiled - and more sold to unsuspecting older citizens - kept alive by BUFFER MONIES to deliberately, hide the fact they were UNAFFORDABLE loans, sold by Major Banks (85%). But wait there is more: and 18% of toxic loans on a buffer drip-feed and refinancing - even more unaffordable - are buried within the FULL DOC MARKET. Wakey Wakey..............
Sub Prime Lending Australian style: A time bomb loaded up with risk for over a decade and a half.
APRA’s domestic Australian Authorised Deposit-taking Institutions property exposure for the December 2013 quarter shows 34.4% of all new loans had an LVR of more than 80%, down slightly from 34.6% over the September 2013 quarter and the same proportion as in the December 2012 quarter.
Commentator Cameron Kusher, senior research analyst at RP Data, called it “intriguing” that the proportion of higher LVR lending remains high, when these loans are “inherently more risky”.
Only 13.6% of total lending over the last quarter was for a LVR of more than 90% compared to 20.8% on an LVR of between 80% and 90%.
“These mortgages are typically insured so the risk to the ADI itself is lessened, however it doesn’t necessarily reduce the overall market risk if we see arrears and default levels climb in the future,” Kusher said.
Major banks accounted for almost all the increase in low deposit home loans over the last year, which could be seen a sign of willingness to stretch credit criteria to maintain volume growth.
The high proportion of loans with an LVR of more than 80% is topical, after the Reserve Bank of New Zealand in October reduced the amount NZ banks can lend to higher risk mortgages, with only 10% of total lending for loans with an LVR of more than 80%.
MFAA CEO Phil Naylor said while regulators here are “certainly aware” of the issue, he does not believe Australia needs to follow NZ’s lead to curtail loan amounts to risky potential mortgagees.
“We’ve seen no indication the current Australian LVR profile is giving [APRA] such concern.”
The NZ position has the effect of punishing the whole market for some "apparent overheating" in the Auckland market, he said.
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Thursday, 06 March 2014Oh thankyou Mr Kusher.
It brings me a great deal of comfort to know that “These mortgages are typically insured". What a relief.
Oh, but wait ... for a moment there I thought you were looking after the consumer. But it's a self ingratiating insurance so, as you say, "the risk to the ADI itself is lessened".
The fact is that so-called 'risk' to the banks is almost non-existent - firstly because the 'loan' was actually 'credit' that was created out of thin air, and secondly because the mortgage was sold by the banks into the securitisation industry - so the insurance payout is just cream on the cake for the banks.
However, the risk to the consumer as a result of the unconscionable conduct of the banks is very real as shown by the thousands of victims across Australia that BFCSA has been able to identify.
Thanks to ASIC the Aussie dream of home ownership has been decimated - no longer called rags to riches and eventual security but a nightmare called riches to rags and onto the slagheap!