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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: Boom and Bust Banker mentality leaves UK breathless. More evidence of PONZI lending

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Frightening Loan to Income ratio's on mortgages in the United Kingdom.

Another boom and bust in the housing market is inevitable without more radical reform

By Jeremy WarnerEconomics

Last updated: June 13th, 2014

Perhaps the biggest UK economic policy failure – or rather, oversight – of the past thirty years, is the inability of successive governments to get to grips with the boom and bust of the housing market. Since the war, we have seen at least three major cyclical busts, and countless smaller ones. New measures announced in Thursday's Mansion House speech are welcome, and perfectly fine as far as they go. But they fall dramatically short of a complete solution.

There are two underlying reasons for the deficiencies of the UK housing market. One is the powerful vested interest which has built up around Britain’s restrictive planning laws, making development both extraordinarily expensive by international standards and inadequate for the needs of a growing population.

The other is that incumbent governments, and indeed householders, quite like house price booms. They give the illusion of growing wealth, if not the reality when they are substantially debt financed. And when people feel wealthier, they spend more, keeping the wheels of economic growth turning.

But as we learned during the banking crisis, very high levels of housing debt can be profoundly destabilising when things go wrong. When the balloon goes up, people stop spending, banks stop lending, and the economy stalls.

So the Chancellor, George Osborne, rightly identified housing in Thursday night’s Mansion House speech as top of his “things left to do” list for the dying ten months of Coalition’s time in office. He’s left it a bit late, some might say. What he announced to the merchants and bankers of the City are the sort of things that should have been done right at the start, though to be fair, the Government did take a stab at planning reform in its early years in office, only to be beaten back in the Tory shires.

In any case, the Chancellor has belatedly determined to have another crack at the problem, with action on both the demand and supply side of the ledger. With loan to income ratios on new mortgages again at record levels, he’s giving the Bank of England new powers to impose caps, similar to what they have in Singapore and Hong Kong, on the size of mortgages, both in relation to income and value.

As it happens, this may not be entirely necessary. Recent evidence is that the London housing market, where all the overheating has been over the past year or two, may already be cooling of its own accord. New Mortgage Market Review (MMR) underwriting rules, in combination with the withdrawal of mortgages from the Bank of England’s Funding for Lending scheme, may have done the trick, without recourse to harsher, “macro-prudential” tools.

Warnings on Thursday from Mark Carney, Governor of the Bank of England, that the first interest rate hike may come sooner than the markets expect will also serve to concentrate minds, though by putting a rocket under sterling, it might create other problems for the economy by further increasing an already record high current account deficit.

Whatever. Crushing the life out of demand is in truth a most unsatisfactory solution, for it will only leave aspiring housebuyers even more frustrated. And as the International Monetary Fund said in its annual article IV health check on the UK economy, "macroprudential and monetary policies can only be temporary palliatives to an underlying problem".........


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