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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: Piggie Bankers feeding from same trough Part III of 5

Posted by on in Bankers A Law Unto Themselves
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Denise Brailey

Posted by Denise Brailey on Sunday, 08 July 2012 in Banksters, Lenders and Brokers

Enter the NO DOC strategy....

Bankers realised that brokers were reluctant to "maximise loans," perhaps because some had a conscience or doubted the strategy to use every drop of equity that could be squeezed from a customer's home, and pour the funds into property developments.  The service calculator meant that futuristic incomes had to be used.  Brokers were taught by the BDM's (bank employees) to fill out three pages of the LAF, glean a signature from the hapless customer and then come back to the office, click on the bank's web program and use their service calculator to "calculate a brand new income."  This figure was a mixture of base income plus expected rental income, plus tax advantages, caps etc. 

The Bank's calculator cemented all the sleazy part of the loan criteria.   Several BDMs and Brokers left the industry in disgust.  One broker who stayed for two months explained: "I was told you had to do it this way or you won't make any money......"  BDM's would encourage brokers to use "ABN's for a Day...and still fit within the lending policy guidelines."  There is no doubt the collective use of this wording across all brokers and BDMs and 36 lenders, demonstrated collusive and dangerous strategies with the prize being the TITLE DEEDS to your home.

ASIC continued to bleat: "we have found no systemic issue regarding asset-lending."  APRA could not see any problem at all.  Shame on you lot!

Banks engineered "Plan B" known as THE NO DOC SOLUTION.   Suddenly, Brokers entering the industry in 2005/2006, found their emails bombarded with the "new and exciting product: NO DOCS:  NO Financials needed, No LMI, ABN's for a Day, No clawbacks, and 90% LVR and NO dreaded service calculator necessary.  As one broker explained: "all you needed was to find customers with equity in their homes and a pulse."

The wining and dining of brokers by the Major banks was in earnest.  The fact that the Low Doc was only supposed to be for Self Employed people, using the equity in their homes to advance their own interests through borrowing for business or investment purposes, had miraculously flown out the window.  The bank stationary included Centrelink recipients as targets.  It was a free for all. The Piggy Bankers collected enough Title Deeds to fill a wheat silo.  And they paid themselves bonuses that matched the size of Mount Everest.

Lending Policy Guidelines were being breached by these lenders in all directions in a grab for the greatest number of Title Deeds.  In addition, as if all of the above had a distinct rotting veg smell, the Lenders set up a BORROWERS INCOME STATEMENT to throw the onus of signing such baloney onto the customer to blame them for purchasing this evil and faulty product. 

Yet the banks wanted to ensure the borrowers never placed the "true" income figure as a statutory declaration of income in the Part B section.  Heaven forbid that a borrower would write down the true income, or the loan would have to be rejected in the name of prudent lending.  BDM's were again used by the Bankers to explain to Brokers "Do not fill in the income in Part B for a No Doc."

The hapless victim was simply asked to sign the bottom of the page.  They trusted the Banks.  To prove a point one email gave explicit instructions to "rewrite the LAF (Loan Application Form) as a No Doc we have seen the asset and liability statement and the income"  In other words, we know this persons real income so it will be rejected, but write this one up again as a No Doc and "we can make it fit."

In some cases the BDM's wrote up the applications for the Broker to pump up the volume, hence in most cases, three people's hand-writing appeared on the original LAF.  Critical details were written in after the three page document had been signed by the victim and without their knowledge or consent.  Over 100,000 families are believed to have been targeted in this manner.  All of the 1000 loans we have seen to date have extreme affordability issues as being blatantly obvious to credit assessors - on all three levels.

The Family Castle:  The intention to create the biggest Home Heist in the nation's history.   Stay tuned for PART IV

Last modified on Thursday, 04 April 2013
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