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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: Bad WA home loans push CBA delinquencies up to four-year high

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Bad WA home loans push CBA delinquencies up to four-year high

Australian Financial Review Feb 7 2018 5:54 PM

Michael Bleby


CBA home loan arrears jumped in WA in the six months to December, pushing the lender's overall bad loan book to its highest level in more than four years.

The largest mortgage lender, which reported a weaker-than-expected a cash profit of $4.73 billion on Wednesday, said home loans 90 or more days in arrears accounted for about 0.6 per cent of its loan book in the first half of the year as the proportion of bad loans in the mining state picked up to about 1.3 per cent, well above Queensland, the closest region in terms of arrears.

"Loan impairment expense was $356 million, an increase of 1 per cent on the prior comparative period," CBA said. "The result was mainly driven by increased home loan and personal loan collective provisions, which include the impact of slightly higher home loan arrears, predominantly in WA."

The figures show the continuing fallout of the WA housing market, which is struggling to throw off the mining-induced hangover that pushed property values down 2.6 per cent in the year to January. The proportion of bad home loans in the state has more than doubled over the past three years.

CBA reduced its exposure to the WA market over the six-month period. The balance of home loans in the state fell 0.3 per cent to account for 16 per cent of the bank's total home loan book. Only the SA/NT region fell more, with a 0.4 per cent decline.

In contrast, CBA upped its Queensland lending balance by 1.3 per cent.

In addition to increasing provisions against bad homeloans in the state, CBA said it was conducting rigorous stress testing of loans and tightening its credit policies with caps on loan to value ratios and requiring borrowers to take out lenders mortgage insurance.

The rate of decline in Perth values is easing and the Real Estate Institute of WA earlier this week said the market was in a recovery phase. In its quarterly housing market update last week, CBA rival NAB predicted an end to the declining prices that have dogged Perth for years.

House prices were likely to rise a meagre 0.7 per cent this calendar year and pick up to 1.2 per cent next year, NAB said. Unit prices, which have been through a similarly weak period were also likely to stop falling and show a gain of 0.4 per cent this year and 0.7 per cent next year, it said.




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