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

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

documents you were never supposed to see.

http://www.genworth.com.au/downloads/4-2-3-Spotlight/spotlight-series-low-doc.pdf

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

Spotlight Series

ISSUE 3

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