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.
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.
http://online.wsj.com/articles/australian-banks-warn-against-tougher-regulations-1409301494
Australian Banks Warn Against Tougher Regulations
Australia's Big Four Argue Against Imposing Tougher Capital Buffers
Aug. 29, 2014
MELBOURNE, Australia--Australia's largest lenders defended their ability to withstand any future banking crisis and warned against further moves to strengthen the financial system, in submissions published Friday to a government-backed review.
The country's so-called Big Four banks in submissions to the review of the financial system opposed the imposition of tougher capital buffers. They have also argued against the need to ring-fence investment banking operations and advised caution over introducing any creditor "bail-in" system.
"A compelling case has not been made that further strengthening would provide additional benefits to the financial system," Mike Smith, chief executive of ANZ, said in a submission published on the inquiry's website Friday, adding steps had already be taken by the banks and regulators that would protect the public from losses.
The big banks and...
APRA worried about growth of high risk lending in Australia’s $1.3 trillion mortgage market
JEFF WHALLEY BANKING
HERALD SUN
MAY 26, 2014 8:27PM
Qld Courier MAIL
THE nation’s banking watchdog says it has witnessed “increasing evidence” of high-risk lending in the $1.3 trillion mortgage market as the scrap for market share intensifies in the face of low lending rates.
The Australian Prudential Regulatory Authority has laid down the law to banks and other lenders with a series of new draft guidelines aimed at sharpening risk management.
The Reserve Bank has maintained official interest rates at a historic low of 2.5 per cent since August last year.
That’s created a hothouse atmosphere among banks which are fiercely competing to grab as much of the mortgage market as possible.
“In this environment, APRA is seeing increasing evidence of lending with higher risk characteristics and it does not want this trend to continue,’’...
Watchdog sounds warning on risky home loans
DateMay 27, 2014
Read later
Jacob Greber and Clancy Yeates SMH
Sydney Morning Heraldf
Concerning trend: APRA chairman John Laker. Photo: Rob Homer
The bank regulator has intensified its crackdown on risky lending, pushing back against a potential property bubble and increasing the Reserve Bank of Australia's capacity to keep interest rates at a record low.
Concerned fierce competition for customers is driving down lending standards, the Australian Prudential Regulation Authority on Monday issued tough guidelines on how it expects banks to monitor and manage mortgage risks.
This includes making banks consider geographic concentrations of risky loans; limits on loans relative to incomes; stress-testing borrowers; and avoiding giving managers financial incentives to make more loans.
Analysts said the draft guidelines, which fall just short of the "macro- prudential" rules adopted by regulators in New Zealand and Canada, mean the pace of growth in the mortgage...
http://www.smh.com.au/business/intelligent-investor/banks-structured-to-deliver-poor-advice-20140526-38ye5.html
Banks structured to deliver poor advice
Intelligent Investor Date May 26, 2014 - 1:15PM John Addis
Something odd occurred last week, something that almost never happens in business, let alone financial planning, a sector famously impervious to the needs of its customers. An industry body - in this case the Financial Planning Association (FPA), representing over 6,000 planners – argued the case for more regulation. As a recent World Bank study noted, many of Australia's major industries are dominated by a handful of companies. They prefer to be free from pesky regulation so they can carry with their over-charging ways. This tendency is nowhere more in evidence than in the 'wealth management' arms of the major banks, which have run a relentless battle against the proposed Future of Financial of Advice reforms.
So why would the FPA, which is arguing for better educated planners, the separation of products from advice...
We suggest you read this site and the extended article on whether David Murray (ex CBA) is right man for the job as Chair of the Roots and Branch debacle into Banking. You all know our view.
APRA warns Murray
Posted by Houses and Holes in Australian banks, Featured Articleat 1:40pm on February 20, 2014 | 15 comments
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From the AFR, Australian Prudential Regulation Authority chairman John Laker has warned in a speech today that:
“The impact of seeking to retreat from the status quo on the hard won reputation of the Australian banking system … will I am sure be carefully weighed by the inquiry,” Dr Laker told an audience at the Institute of International Finance Conference.
Dr Laker’s remarks follow an address by the chair of the financial services inquiry, David Murray, during which he discussed the costs to the economy of regulation....
New APRA data beats mortgage records
by AB | 26 Feb 2014 Australian Broker News
The Australian Prudential Regulations Authority has released new data which indicates the prevalence of investors and subsequently interest-only mortgages within the market is rising at record levels. APRA’S domestic Australian Authorised Deposit-taking Institutions’ property exposure data for the December 2013 quarter shows 34.6% of all mortgagees had a loan with an offset facility – a record high since the archives began in March 2008. “The rising proportion of loans with an offset facility indicates to me that many mortgagees are utilising these facilities to reduce their mortgage liability whilst still having access to those funds,” said Cameron Kusher, senior research analyst at RP Data. This is supported by recent RBA data which indicates the typical mortgagee is around 21 months ahead in their mortgage repayments, he said. The APRA data also shows a record high 35% of all outstanding loans...
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APRA the Regulator says......
www.apra.gov.au/Speeches/NewDocLib2/04-Chart-Acctnts-MN-20-Jun-07.pdf
Recent court decisions relating to residential mortgage lending emphasize that residential
mortgage lenders must assess the ability of the loan applicant to repay the loan and must not
be concerned solely with whether the value of the security property is adequate to repay the
debt. The decisions also indicate that lenders should not entirely accept the information
provided by loan applicants at face value, especially if other information or common sense
suggests otherwise.
Ed: We kept telling Dumb ASIC this. The valuations are irrelevant. S 25.1 of the Bankers Code has been breached on more than 100,000 mortgages according to our research....it follows that....etc.
It is APRA’s view that attention by ADIs (Austn Deposit-taking Institutions) to the requirements in the prudential standards to have
prudent lending practices, including effective assessment of a loan...
Tom is spot on:
Denise, As know FOS are now eliminating the appeal avenue from their decisions and going straight to determination effectively benefiting the banks and themselves. By the time the Senate Inquiry into Lazy ASIC reports in March FOS and COSL hope to reduce their over bloated case load. The one they both pretend they do not have. Our Banks and ASIC, reminiscent of the Nazi tactics in the latter stages of WW11: holding centres and send everyone to gas chambers before the Allies arrived. This time its the Bank Case Manager executioners. Naturally, it's in everyone's interest except consumers of toxic bank loans, to have ASIC lie twice to Parliament: "we see no systemic issues." Industry Regulators and their Banking Buddies must be desperate to shred the evidence to skew the figures of case numbers.
Yes Sir: The most experienced INCOME FIGURE FUDGERS and Document Magicians with disappearing files living...
A Rollicking Read: http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/RP9697/97rp16
The Australian population is ageing. This increases the importance of assets to fund consumption in retirement. The Commonwealth Government has sought, through superannuation initiatives, to encourage private asset accumulation and thus to encourage reduced dependence upon the age pension in retirement. This has led to a shift in household financial assets into market-linked investments, meaning that households are bearing more investment risk than in the past. Improved financial advisory services and increased efficiency in funds management are thus required.
The number of people working extended hours continues to increase. Thus, many people may now have less leisure time and less time available to manage their financial affairs. Such people will have a greater need for financial products which offer convenience and ease of access. At the same time, many consumers will experience greater variability in the timing of income. Those spending longer periods in education, those in...