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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: Why APRA, RBA, ASIC & Treasury are producing no stats on Banks & Toxic Mortgages in Australia?

Posted by on in Consumers Fight Back
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Our growth rate as a support group – the peak and only support group doing this work – is gathering momentum in number of new members at around 30 per month and that will escalate as the main stream see the bigger picture.  We now know that a third of loans are via banks and no broker involved.

We also know that our latest surveys have revealed 18% are full docs…….arranged by bank managers from a pool of  $1.28 Trillion mortgages.  What concerns me is that RBA have continued to trot out $1.28 Trillion for the past few years.  RBA suggest this figure has not changed in that past 5 years, yet the MFAA suggest their members are writing X number of these new mortgages per annum.  There is of course a contraction in the settling of mortgages each year, yet the low docs we know intentionally implode within 7 years.  

The most recently approved Australian Sub Prime loans are defaulting within less than 3 years.    More recent within 18 months.  These are unsustainable mortgages and the public needs to beware of the sting in the tail.

Australian Securities and Investment Commission ("ASIC") are suggesting the internal bank emails we delivered to them is "just marketing."  See these emails for yourself under "Breaking News" at the top of the Home Page and click on the LINKs.  You be the judge.

The post 1 July 2010 dirty time bombs are emerging and once again the products do not say Low Docs….they are given new fancy brand names so that the customer has to ask: “is this a Low Doc?”  The fees and charges are vastly different.  Once again we see Bank Officers arranging these loans and no brokers involved. Once again ASIC does not insist that Banks comply with Contract Law and ensure the customers receive a copy of the initial document they sign known as a LOAN APPLICATION FORM.

 Intentional? YES.   Not one copy Australia wide - all banks............. Why?  Are the banks short of paper?  Are they saving trees?

The average potential customer can be lured into this vortex of criminal activity and say yes to a competitive 6.8% mortgage, yet the small print shows it’s a honeymoon TRAP.  Suddenly the loan escalates to 10% and the default pushes that figure up to 15%.  An average payment of say $2000 per month shoots to $2900 and if they default (usually within a month of that happening and 15 months from inception) the mortgage payments jump to a whopping and impossible $4350.    The bank then comes along as the best friend and suggests a “TOP UP” so another $70,000 of luscious DEBT is offered to keep toxic loan hidden from public view for a further 2 years!

ASIC say the fees are disclosed.  Bollocks - the deception is clear no consumer can understand the hidden bits:  the % per month calc looks lower than the annual.  Its a smoke and mirrors trick but ASIC accept these games as being "marketing."  100% of customers are deceived by this trickery and have been for decades, but its not a criminal offence?  Are you kidding me?

The Australian Sub Prime Mortgage Scandal is all about hiding the truth.  Everyone involved is lying to consumers including the regulators.

As the market cools, the banks are reluctant to “sell up” properties hence most of my members are in default but “safe” in their homes for the moment, and protected by FOS whose own stats have jumped in number of complaints and waiting times for investigations are up to 14 months or more.  COSL just sits on files but we know why!!!!

This phenomena potentially is a key indicator that the banks are sitting on the “assets” and have not marked them as being “in default.”  I raised this point in Parliament last year.  Banks know that the figures jump into reality and are revealed to all if they serve writs, as the courts then record “the rise in mortgages in default.”   I mentioned that a few couples in default, are still in their home and not paid a payment for 4 years.   That comment triggered a letter from APRA (questioned by the Senators) to all Banks to ask if their figures were accurate – lovely!

Is anyone conducting AUDITS?   Is anyone checking dodgy bank figures?   Is anyone policing these banks?   Not that we can see.  The kicker is this:  Reserve Bank of Australia ("RBA") said to me recently they have no update on Nov 2011 statistic of 10% of our $1.28 Trillion market are Low Docs in RMBS packs.  BUT Wayne Swan scrapped the packs (after saying most profitable and one of the best policies) in March this year.  RBA said the figs come from APRA.  APRA say they do not release stats on banking to public (only for Treasury we presume) but APRA's source of collecting available data is the Banks – so who is auditing/checking/having a squizzy?  

Wide open for untrustworthy bank manipulation, one would think.  All bank annual reports do not reveal the level of Low Doc Mortgages or the toxicity of 18% of FULL DOCS.  Of course not.

So do we have 25% FULL DOCS and 75% LOW DOCS in Australia right now?  I can here the howls from here from the banking sector and their regulatory mates!   How dare I print such nonsense!  But on the other hand.........where are your statistics and are they from a reliable source?  What is the ratio of Low Docs to Full Docs.....its a reasonable even vital question............ one would think so.

So how can we get these basic stats?  Its extraordinary that we are the only source by surveying BFCSA members who are the victims of these crimes.  Fraud is a crime in this country, but for website visitors from other countries: we keep no stats!!!  In addition, we do not prosecute bankers who are a protected species.  Why?  Because banks are self-regulated..........................Glory be!  

So BFCSA continues to clean up the debris of human lives in financial ruin with young families, older folk and children being thrown out into the streets by a rotten to the core banking system that allows these crimes to proliferate with impunity.  These Banksters are a Law Unto Themselves."

The default figures are obviously being manipulated as APRA understood last August.  Each bank keeps adding 14.5% penalty charges to the accounts so they are happy to keep defaulting loans running until the Loan to Value Ratio ("LVR") jumps to 110% and beyond.   We know the valuations are being manipulated by the banking sector.

All LVR’s were contrived as a miraculous 80% "maximised" loan at inception. Some rose to 97% LVR at inception.  Banks have been pushing the "maximise" loan thing for a decade.  ASIC describes this practice as just marketing.

Banks have pricked the bubble.  They say no more TOP UP loans.   Really?  So now the market is cooling………………………LVR’s are rocket upwards.

How did all of these people who signed a Loan Application Form all earn sustainable income that EXACTLY MATCHED the LVR of 80%.  Am I the only one who thinks that fact is more than odd?  That, such a figure/pattern is a key indicator of Grand Final Fraud?

In USA material I saw a mock up pie chart showing 25% Full Docs and 75% Low Docs…..same thing……….no stats?  Why not?

So the big issue is:  how many low docs are swimming around in the system in both Bank and Non Bank sectors?    So who is propping up whom?

Yes indeed, this is very ugly and about to get a whole lot worse I fear.    

Message to regulators of our hopelessly compromised banking sector:  SHOW US YER STATS!        dThis email address is being protected from spambots. You need JavaScript enabled to view it.

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  • doyla66
    doyla66 Wednesday, 10 July 2013

    Lies, damn lies and more statistics ? WTF would our regulators know?

    Denise, as I see it, if our statistical analysis says 75% Low Doc and 25% Full Doc and there are no stats produced using the same or more accurate methodologies, then those stats are the stats.
    No audit, no auditors, figures from those who have large investments in supplying any number that suits their purposes ... don't believe a word they say until they answer the questions about their statistical methods and their accuracy.
    Stats and evidence - Banks, regulators and responsible politicians looking lame ...
    May need whistleblower protection for pollies as well ..!!

  • doyla66
    doyla66 Thursday, 11 July 2013

    Check with the Aggregators

    By my way of seeing all of this mess if the Banks wont hand over the correct figures then the only ones that would have a true idea of what % of loans are what is the AGGREGATORS. Didnt the Banking System and the Government agree to an aggregated system of lending where all records of the lend must go through an independant source to match up the details between Bank and Broker so that nothing underhand could ever possibly take place. Well that system is really working isnt it, but even so they are supposed to be keeping audits of the transactions if I am not mistaken and are reportable at call so why does Government not ask for the figures from this so called self installed regulator.

  • doyla66
    doyla66 Thursday, 11 July 2013

    Thankyou for that information.
    There had to be some sort of "check and balances" system ... surely.
    Freedom of Information may be the way to go?

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