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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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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: Calculated Negative Amortisation and Neg Gearing twisting NOT ALLOWED!!!

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Have you all seen this???  Look what is not allowed!  Go into the link for’s an

on line brochure: Must Read for Aussie victims for Sup Prime Toxic Loans.  Shocking

documents you were never supposed to see.


Australian Prime Low-Doc Loan Compared to US Alt-A Loan


Spotlight Series


Introduction of the low-doc loan has created a unique opportunity for mortgage lenders and the self-employed borrower. Introduced to Australia in 1999, low-doc loans revolutionised mortgage lending for a key sector of the market.  Today, low-doc loans open opportunities for lenders to tap into a previously overlooked category of borrower. For self-employed workers and contractors, the introduction of low-doc loans helped many make the dream of home ownership a reality.  Low-docs vary from mainstream mortgage products only in that the borrower self-certifies their income. This self-certification is needed because the borrower does not have the up-to-date financial information required to obtain a fully documented loan at the time they wish to borrow the funds.  Other than the method to confirm income details, these loans are similar to a traditional home loan in terms of features and repayment options.  Low-doc loans service many needs, including owner-occupied or investment property requirements, home improvement, refinancing and debt consolidation.  “Rather than showing proof of income, as in a fully documented loan, a low-doc borrower self-certifies their income, which means they certify their income on which a serviceability assessment is then undertaken. This ensures that the stated income is sufficient to meet the proposed mortgage commitments.”


“The recent coverage of problems arising from the US sub-prime lending situation has been intense. The magnitude of the US situation begs the question, how could this have happened?”


US Alt-A Loan

LVR  95%

All including salaried

Prior Credit Defaults

Negative Amortisation

Teaser Rates



Australian Prime Low-Doc Loan

Type of Borrower Self-Employed

LVR 80%

Prior Credit Defaults Not Allowed

Negative Amortisation Not Allowed

Teaser Rates Not Allowed


Low-docs in numbers

54 – average LVR percentage for low-doc loans, compared to the 67 per cent for traditional loans

385 – number of different low-doc loans offered by banks, credit unions, building societies and non-bank lenders to Australian borrowers

80 – maximum LVR on a low-doc loan Genworth is willing to insure

98 – the approximate percentage of low-doc loans on Genworth’s books where the principal person is a self-employed borrower

82 – percentage of jobseekers that told online recruitment website SEEK that they are interested in owning their own business at some stage in their career, highlighting the market potential for low-docs

30 – maximum loan term for a low-doc loan insured by Genworth


8 – the number of years Genworth has been insuring low-doc loans

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Guest Monday, 18 January 2021