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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 Members say Big Bank Lenders to Blame for Australian sub prime loans : ASIC saying Yes Misconduct but Brokers to Blame."

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We are the brokers friend not the brokers enemy.  It is the Gods of Industry, the Masters of the Universe that have consistently told Parliament "its brokers doing the wrong thing."  The documentation gathered by BFCSA members show its the LENDERS TO BLAME and 86% are the Big Four Major Banks as you would find in any banking catastrophe where dabbling in white collar crime driven sub prime lending, is obvious.

Australia is only just playing catch-up.  Read the Senate transcripts of the regulators and FOS and COSL - the Ombudsman's services - tainted and over-run by bankers.  To prove that white collar crime pays: consumers are getting a raw deal and brokers are being blamed in Parliament - not by me!  The Lenders invented the entire process, teaching brokers it was all above board!!!!  Medcraft admitted a computer approves the loans and calculators calculate the income used..........................the calculator is rigged at 1.1 NSR.  We have the insider proof.

Point is what is the Government going to do to clean up the mess.

See the threads - comments on Australian Broker News and become involved. 

 http://www.brokernews.com.au/news/breaking-news/dishonest-conduct-more-common-in-brokers-than-lenders-asic-180831.aspx

See article below - after my comment...........................................

We all agree there may be a few rogue brokers but the main thrust of this thread is that the Lenders are the rogues who set up the calculators to calculate "futuristic incomes" which is clearly against the Code of Practice re the APPROVAL of unaffordable loans.  In 2002 Colin Neave released a policy to say Brokers are the Agent of the Bank.  It is FOS that changed the rules on that after Neave left to become Commonwealth Ombudsman - Read FOS Bulletin # 36.  The Lenders are indeed the culprit for the exaggerated incomes and the Lenders intended to avoid liability, pay commissions and suggest brokers were merely joint partners and brokers were to blame.  That's what Lenders regulators and agencies told Parliament recently.  I was there.  Meanwhile older persons with one asset - their home were targeted.  Senator Bishop had to ask five times of the regulators: "what happened to cause this 2002 - 2008 problem of targeting pensioners?"

The Senators want to know what happened. They all want the truth.   The new NCCP laws are a grouping of old laws that existed and we won cases prior to 2010.  ASIC had power and never used it....hence the Inquiry they now face.  The loans under NCCP are starting to implode after 2011.  WHY - they are interest only and high risk lending in sub prime fashion that will impact us all.  That's the problem and APRA is concerned - well Bloomberg is.....27th May....39% increase in interest only loans.  We have found 63 of these loans already - set to implode within 5 years or less - all unaffordable and all approved by Major banks.  I can only report to Parliament on what documentation I have gathered.  If your work discovered an UNexploded bomb in the finance  sector, would you report it?

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'Dishonest conduct more common in brokers than lenders': ASIC


by Mackenzie McCarty | 25 Oct 2013
 

ASIC has pointed the finger at mortgage brokers in its defence against Banking and Finance Consumers Support Association (BFCSA) allegations of loan fraud in its latest submission for the Senate Inquiry into the watchdog's performance.

BFCSA head, Denise Brailey has been at the forefront of an on-going steam of accusations and claims ASIC has failed to investigate ‘hundreds’ of cases of loan fraud and subsequently covered up a ‘systematic banking failure’.

However, in its submission on reforms to the credit industry and low doc loans, ASIC says that, while it’s received more than 150 letters from BFCSA members alleging widespread misconduct by lenders in relation to falsifying low doc loan application forms, the evidence doesn’t stack up.

“Almost all of the loans that BFCSA members have raised concerns about were entered into before the [NCCP Act] commenced, with most of the loans issued between 2004 and 2008. Where the borrower has provided details on the purpose of the loan, just over half were for investment or business purposes and as such were not regulated under the state and territory credit laws,” reads the submission.

Furthermore, the regulator claims that allegations of loan fraud is more commonly initiated by unscrupulous mortgage brokers – not lenders.

“Consistent with ASIC’s more recent experience under the NCCP Act, it appears that dishonest or fraudulent conduct has been more commonly found in relation to mortgage and finance brokers, rather than lenders.”  

The submission comes as ASIC continues to dodge accusations over its failure to prosecute the Leighton Holdings bribery scandal and the CBA financial planners and Securency issues.

A date for Senate hearings is yet to be set.

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Comments

  • doyla66
    doyla66 Saturday, 07 June 2014

    Banks love to find someone or something else to blame: brokers, GFC, government, regulations, international conditions, etc etc.
    They seem to be blaming borrowers less, at least publicly, probably because they're finding it harder to sell loans to more aware Australians.
    It's good that we're challenging the habitual "blame the broker" routine. ASIC should think twice now before dumping on brokers. People are listening and each silly blame game speech given by ASIC just makes ASIC look worse. They've really lost a lot of credibility during this Inquiry. Blaming Financial Planners won't work either, unless there is plenty of evidence to support it.
    Fact is ASIC screwed up with the CBFPs and so did CBA. That wrecked thousands of lives and the compensation offers were pitiful. CBA seemed to be gaming their already mistreated and ripped off customers, to see what they could get away with.
    Knowing this, how many people would trust CBA for honest unbiased Financial Planning advice?
    CBA and all the big banks are still missing the point - their image is seriously tarnished by their mistreatment of Mum and Dad investors and borrowers. Until they stop the bullying, cheating, gaming and jokey behaviour about their criminal conduct they will continue to be distrusted. It seems to be a long time since we've seen a Bank approval survey from the public domain ....

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