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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: ASIC wield the knife at Brokers not Lenders - Consumers and Brokers have their say

Posted by on in Consumers Fight Back
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Ah YES....get tough DUMB ASIC (dumb or corrupt - take your pick)..................brokers have no training, nor licence to give FINANCIAL STRATEGIES, nor to check credit apps!!!!!   The only reason they were employed was to save the bank from liability and have brokers blamed for something they clearly did not understand.  This banking scandal is now oozing out of the building in ASIC Melbourne....wake up you guys....we are on to you but your nightmare is just beginning.  

There will be a judgement day for all those who engineered the plot to blame brokers for dirty toxic lending practices INTERNAL TO BANKS.  Smaller Lenders in order to compete had to use THE SAME SERVICEABILITY CALCULATOR - all in SECRET.   

Our members will stop short of calling you swine.....we can leave that to another BLOG.  ASIC knows it can only hit on the obligatory ten brokers a year (I think that's the quota) divided between 330 ASIC so called "investigators."    Yet all Brokers were taught by banks to use the same SERVICEABILITY CALCULATOR - engineered by the banks to FUDGE EVERY APPS INCOME FIGURES.  

ASIC has already admitted to Parliament last week it made decisions to protect banks.  It was never protecting consumers - NEVER.  This is evidenced by the 100% tampering of loans amongst 1200 people we banded together.  Incomes of $50,000 were transported to appear in different person's hand-writing to reflect $180K, after broker used the bank engineered calculator to say $120k.  Are you all understanding this fraud now?  The Banks gave the PASSWORDS for its secret calculator to everyone of the 11,000 brokers and 36% of all fudged loans were penned by bankers (same calculator).

Although this one page document, printed form calculator screen, contains only the personal  (exaggerated)  financial information of the client, the Bank Cartel group together and say "it contains sensitive information."  Under that gem of a supposed legal argument, the truth is once again pounded into a myth.  THE TRUTH: the "sensitive bit" is the NSR ratio in small print at the bottom of the page.  This is only sensitive if released today for today's loans being processed right now.  If the loan we speak of was processed years ago or even last year the NSR has no meaning - other than to expose the fraud and manipulation and criminal activity of the bank.  Criminal behaviour in lending is no excuse to hide behind "sensitive info, so we will not release the document."  In fact to do so is an abuse of privilege.

Banks should do the right thing and hand over the one page SERVICEABILITY CALCULATOR page that they relied upon to approve TOXIC LOANS.   Problem is Banks were never ever about doing the right thing...lest we forget 1929!

Banks wanted to say later and if ever questioned "oh the computer fudged the figures!!!!"  The Major Banks unlikely to be questioned by ASIC or AFP who are learning about fraud from teachers called ASIC - see the transcript.

Banks will then turn on ASIC as Westpoint did - "you said in 2005 it was OK to do this."  OK TO FUDGE INCOME FIGURES?  In whose language? Well in fact the banks are correct.  

Our Parliament passed laws 2001 and 2002 to protect consumers from ugly Managed Investment scams and also financial products and services - engineered by the banks to steal homes from vulnerable low wage families or pensioners.  They called the intended victims ARIPs.  Banks promoted the name of the intended target ARIP's - in wide spread expensive campaigns across Australia to financial planners and brokers.  Banks in unison called their brokers "our Joint Partners" and gave them an agent number....written on the Loan Application Form.

Banks were breaking the law 2002 - 2005.  ASIC went gulp and decided to have lunch again with their banker mates.  

Parliament had made the above unlawful, so what was DUMB ASIC's very bright solution:  "we have extraordinary powers Messrs Bankers, as you well know, we will in fact give you AN EXEMPTION FROM PROSECUTION as its a secret serviceability are all using the same one you cannot fool us.......................its not for public to even know it exists so Mum's the word..................its a self regulated market, so you have to watch what you do....we will not interfere......................AND its for a SPECIFIC PRODUCT!!!!!  So it ticks all the boxes as to why its not in the consumer interests, but who cares about pesky consumers or consumer will take one in particular 10 years to figure it out and we will all be retired by then."  

"Brokers will never figure it out and in any case just claw back commissions as its a high turnover game..............................they will do as their told and write the fudged figure from the calculator, as taught by you, on to the LAF and then when its faxed in you, we know you will pull calculated levers (a bit like LIBOR) and allow fudging a second time by your credit assessors  to bump up the volume.  But that's not our problem.  Happy self regulation.................Our policy is never to interfere.  If consumers are silly to fall for this..............well.........they will know next time."

ASIC then said to Banker Mates: "Here is your EXEMPTION: Class Order # 05/1122 - specifically for Low Docs......................Parliamentary laws no longer apply.  Its a  Get Out of Jail free card.  Enjoy your bonuses and fat retirement and we will enjoy ours..........................."

Who signed it - made policy and implemented this scandalous document?  Brendan Byrne, Greg Tanzer and Malcolm Rodgers.....the Secret Calculator Society no doubt.  Then in 2005 Banks stepped up the drive for control of every home asset they could lay their grubby little hands on. Certain intermediaries went out in 2005 and said: "we'll save ya...."  meaning "we can now with the use of the secret serviceability calculator which we have been using for years and clean up."

Notice on the stand Tanzer confusing the issue by saying there were many calculators..................Bad one Greg: You know you granted the EXEMPTION TO BANKS for secret serviceability calculators, not for public use, for one specific product LOW DOCS.  Its not the same calculatro as Wheeldon referred to in the IFSA scandal, but the same Brendan and Malcolm were involved and signed off in 2005 - same year.

You Mr Tanzer, know the difference between the two calculators.  You are shamefully yanking the Senators' chain!  Quiet frankly you are yanking the chain of consumers as well and it will get worse for you from here on in.  Remember we had dinner in the Melbourne ZOO, guest of Vic Fair Trading 2004...welll I was.  You know exactly what I am talking about and, one year later you cut this deal with the Banks to exempt them from prosecutions re sub prime loans!  

In 2012, Peter Kell draws the short straw and has to tell Parliament a small porky that "there are no systemic issues?"  Why would he blatantly lie like that?  Because we now know ASIC set up the conduit for banks to be exempt from prosecution with dodgy mortgage lending.  Your boss also suggested the service calculator was simple a "tool" and not compulsory to use!!!!  Another big whopper!  The calculator was compulsory and had to be attached to the LAF.  I presume Philip Field told you I had discovered that little gem in 2011.  Field smiled and said: "well that's interesting...could change things!"

BUT FOS never mentioned that in any of its reports later....................why not?  No-one told the consumers they had been set up by the Banks and then exempted from prosecution by ASIC 2005.  You just want to keep the Senators like mushrooms...............................

You and your colleagues are all upset that Wheeldon named you????????  Well that was a coup for consumers.....................

Brokers tell us: "we often asked for loans of $250 and clients were given $300K by the banks - that was to cover "affordability."

Members do not know each other - are all those individuals lying?  SOMEONE IS.............................................The Regulator is lying?  Why?  Is it a cover-up.  Yes we have a hidden, now not so hidden SUB PRIME MORTGAGE CRISIS here in Australia.  The PM was talking about it the other day.  He wasn't? He has no time to read Hansard?  No Minders to read it? 

ROYAL COMMISSION into BANKING is long overdue and Brokers now fear not only their industry has been irrevocably been tarnished, but banks are moving their nefarious operations for loan processing off shore.  First announcement came from Westpac.  New Zealanders call them WORSTPAC.

There is no longer any TRUST or CONFIDENCE in our banking system as all credit was made out of thin air - not money. The money markets have become putrefied.  Who ever said Greed is Good.......means greed is good FOR ME.  Greed on this scale can bring down the economy.  

Now the Treasurer wants to target pensioners.  I don't think so Joe.  Pull that one and I will release your letters to me when you were Finance Minister circa 1999.

NOW LETS HEAR FROM THE BROKERS - brokers and borrowers set up to take the blame................................


10 April 2014 Nick Bendel



Industry figures have said that mandatory reference checking could raise professional standards – but it could also backfire on brokers.  ASIC warned in its submission to the Financial System Inquiry that poor reference checking by the financial services industry was allowing “bad apples” to find new jobs even after their unprofessional behaviour had been exposed.  The regulator said the problem could be solved if proper reference checks were made compulsory.  Century 21 Home Loans chief executive James Green said although ASIC had good intentions, brokers would be placed in a difficult position if they were forced to adopt such a scheme.  Mr Green told The Adviser that it would be difficult to conduct official checks on candidates from banks, because the big banks refuse to provide references.  He said brokers could then be accused of privacy violations if they tried to find other ways to vet.

31 March 2014  Nick Bendel

Large numbers of brokers are convinced that ASIC holds brokers to higher standards than lenders.  A recent poll conducted oline by The Adviser found that 74 per cent of respondents thought ASIC was "prejudiced against the third-party channel".  Another 2 per cent disagreed, while 24 cent said ASIC had no impact on their business.  Freedom Home Loans owner Troy McErvale said the anecdotal evidence suggested ASIC did target brokers more than their counterparts at the banks.  “I would allege that the smaller broker is an easier target. They’re not going to be met with resistance because ASIC have the resources at their disposal,” he told The Adviser.  Mortgage Choice ACT franchisee Mark Reber also said ASIC seemed more likely to punish brokers than lenders.  “I think the standards are the same but they take action on brokers because they’re an easy target,” he said. “It would be nice to see investigations into the lender side of things as well. There are enough poor practices going on behind the doors of the lenders as there are out here.”

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  • doyla66
    doyla66 Sunday, 13 April 2014

    No point waiting for ASIC to ban calculators - they never will - consumers have to demand direct action on loans

    When you think about it, EVERY loan involved the use of the Loan Service Calculator that altered the original borrower's data in any way at all is creating fraud in lending. EVERY LOAN had MANDATORY USE OF THE SERVICEABILITY CALCULATOR. That means all the new loans as well. This is true regardless of what ASIC say about it or what they approve of!
    Until the Banks and Lenders STOP USING THE CALCULATORS they will continue to generate loans based on fraudulent and secretive use of the borrowers raw data.
    Banks and Lenders are lucky - most people don't even know what lies beneath their humble mortgage.
    But every loan that is based on manipulation of the original data could be invalidated if the borrower was aware of this.
    FOS give discounts on some of these loans. In reality all these loans should be written off. None of these loans should be refinanced as this could be considered concealing a crime, because every lender knows that every other lender was doing the same sort of number fudging, big and small.
    Start doing the maths on the size of this problem, just around the corner!

  • doyla66
    doyla66 Sunday, 13 April 2014

    Nothing like doing some fast learning to work out an enigma. When I asked my bank manager for a copy of my LAF I was told (in panic I might add) he did not have access and even if he did he could not provide for the bank only had to retain information for 7 years. I puzzled over that for a long time for I thought banks are supposed to retain loan files for 7 years AFTER repaid and I had a 30 year loan. Now knowing all about that sneaky class order I understand perfectly for it states on the amendment to that class order this -

    -if the calculator is an electronic facility or device—the calculator does not prevent the user from readily printing or electronically storing the estimate; and
    -the provider keeps a copy of the calculator for 7 years from when it is first made available.

    No wonder nobody is given a copy of all those missing pages full of secret what ifs and serve them right if they have to reconstruct them all for once shredded it's a very difficult and costly exercise but it can be done!

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