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BFCSA
MORTGAGE
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What BFCSA Does...

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 Blog

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.

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Recent blog posts
Super funds say they have lots of 'other' expenses Australian Financial ReviewJul 25 2018 6:33 PM Joanna Mather   The banking royal commission has highlighted the relatively high costs allocated by industry super funds to a mysterious "other" category, as it prepares to question fund directors next month. A fifth of expenses associated with industry funds, and 10 per cent of those for retail funds, are classified as "other", and these costs may relate to the higher cost of holding unlisted asses, such as infrastructure and direct investments in property. The royal commission, led by commissioner Kenneth Hayne, is likely to examine how fees eat into retirement balances when it calls directors from 14 funds to give evidence starting August 6. The royal commission has named an equal number of bank-owned retail and union-linked industry funds to appear. Administration and investment manager costs make up a large proportion of expenses faced...
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Financial giants take hit over super fee-gouging fears The Australian 12:00am July 24, 2018 Anthony Klan   More than $350 million was wiped off the value of financial services giants AMP and IOOF yesterday after they were pummelled by investors becoming increasingly aware of the extent of fee gouging in the superannuation sector and how it has underpinned years of super-sized corporate profits. Westpac said yesterday it would take a hit to revenue of up to $70m a year by reducing super management fees and offering “simple, low, capped administration fees” on its BT Panorama products. The move followed reports in The Australian of serious concerns about the banking regulator, including that it had for at least eight years been aware of gouging of super members by Westpac and other major financial institutions, but had failed to take any serious action to stop it. Concerns have also been raised that the...
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   NAB promises to stop fleecing farmers The Australian 12:00am July 24, 2018 Michael Roddan, Greg Brown   National Australia Bank has ­ushered in a new era for relations with farmers and other customers in the bush, putting a stop to damaging practices and boosting ­regional services following community outrage and a bruising round of hearings at the royal commission. NAB chief executive Andrew Thorburn used a visit to the NSW city of Wagga Wagga to ­announce that the bank would no longer apply harmful “default ­interest” rate hikes to struggling farmers. It would also introduce new policies to allow farmers to use much-needed offset accounts against agribusiness loans, and find ways to keep banking services in regional communities. “The royal commission and other inquiries reveal that in some cases we have lost touch,” Mr Thorburn told customers including farmer Keith Edyvean, staff and community leaders at the International Hotel in...
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Think tank close to Turnbulls receives $12m government grant Australian Financial Review Jul 23 2018 11:00 PM Aaron Patrick   The United States Studies Centre, a foreign policy think tank with close links to the Turnbull and Murdoch families, has been given $12 million by the federal government. The think tank, Based at Sydney University, was established by the American Australian Association to promote the US alliance, train students, develop policy and provide an intellectual counterweight to American critics in Australian universities. The grant, which was announced on Sunday, will be provided through the AAA, which was co-founded by Rupert Murdoch's father, Sir Keith Murdoch. Part of the money will go to USAsia Centre, which is the US Study Centre's sister organisation located at the University of Western Australia. The grant is an example of how politically connected organisations are often effective at lobbying governments for funding. Prime Minister Malcolm Turnbull's...
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The Aussie dollar funding crisis squeezing the banks Australian Financial ReviewJul 22 2018 11:00 PM Jonathan Shapiro   During the darkest days of the global financial crisis, when terrified policymakers feared cash machines would run dry and wages would go unpaid, there was one measure they turned to gauge the money markets' level of panic. The LIBOR-OIS spread indicated how much the banks would have to pay to borrow money for a month, over and above the overnight rate they could access from the central bank. The higher it went, the more it reflected the anxiety of lenders about the solvency of the too-big-to-fail banks. Australia had its own equivalent spread based on the local money market benchmark – the bank bill swap rate – and in 2008 transmitted its own panic signals as the faith of conservative cash investors in our major institutions wavered. Now, as the 10-year anniversary of...
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I was a 'puppet': Former financial planner claims AMP pressured him to sell inferior products ABC News23 July 2018 Sean Nicholls, Lesley Robinson, Alice Mulheron   A former AMP planner has described the financial services giant as a "dictatorship", claiming he was pressured to sell in-house products, including to a client who would have been left thousands of dollars a year worse off. The allegations are part of an ABC Four Corners investigation into AMP's scandal-plagued financial planning business. AMP is reeling after evidence at the financial services royal commission in April that it charged customers "fees for no service" and repeatedly misled the corporate regulator about doing so during a major, ongoing investigation. AMP also faces a shareholder class action worth potentially hundreds of millions of dollars. The company's market value has plunged by several billion dollars since the revelations. Brett Strong signed on as an AMP-licensed planner in mid-2013...
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Banking royal commission: Hayne demands fresh AMP, bank documents The Australian 12:00am July 23, 2018 Michael Roddan   EXCLUSIVE  The banking royal commission has probed AMP and the big four banks for hundreds of thousands of documents, board minutes and fee and return structures as it prepares to grill executives over misconduct in the $2.6 trillion superannuation sector. AMP, the nation’s largest for-profit super manager, and other major retail super providers Westpac, Commonwealth Bank, National Australia Bank and ANZ, have all been served wide-ranging notices to produce information relating to their superannuation divisions ahead of the fifth round of royal commission hearings that begin next month. Governance issues relating to trustee duties to act in the best interests of members are expected to feature prominently in the hearings. The Australian can reveal the royal commission in the past few weeks has probed AMP and the major banks on fees being charged...
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APRA ‘captured by major banks’ The Australian 12:00am July 23, 2018 Anthony Klan   The regulator in charge of pol­icing the nation’s entire banking sector had become a victim of “industry capture” and was no more than a mouthpiece for the major banks, a global corporate governance expert claimed. The Australian can reveal six of the nine executives running the Australian Prudential Regulation Authority are former senior banking executives, and three joined the executive within weeks of Malcolm Turnbull calling a royal commission into ­financial services in December last year.   Andrew Schmulow, a senior law lecturer at the University of Western Australia and a former senior research associate at the University of Melbourne School of Law, criticised a recent submission that APRA chairman Wayne Byres made to the royal commission. Mr Byres, who has been with APRA since its creation in 1998, wrote to the royal commission saying banks were...
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Watchdog failed to act on warning over super fees The Australian 12:00am July 23, 2018 Anthony Klan   EXCLUSIVE  The regulator responsible for the nation’s $2.6 trillion superannuation nest egg was warned by its analysts eight years ago that the major banks and finance companies were charging members more than 2½ times the market rates for services, delivering them billions of dollars a year in extra profits. A 2010 research paper published by the Australian Prudential Regulation Authority — which can now be accessed only via a federal government archive — shows excessive fees charged by the managers of the retail, or for-profit, funds have been systemically eating into the retirement savings of millions of workers. Despite the peer-reviewed academic paper being written by APRA’s own analysts, including then APRA research head Bruce Arnold, the regulator has not only failed to take any significant steps to address the issue, it has...
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APRA, business at odds with government over super crackdown Australian Financial ReviewJul 20 2018 5:02 PM James Frost, Joanna Mather   The prudential regulator has warned that budget changes designed to shore up the retirement savings of young people and low-income earners will trigger double-digit premium rises for everyone else. The warning puts the Australian Prudential Regulation Authority on a collision course with the federal government, which says the changes will save vulnerable people over $600 million a year. APRA's deputy chairman Helen Rowell warned of unintended consequences from policies to stop fees being charged on low-balance superannuation accounts. Ms Rowell told a Senate economics legislation committee on Friday the changes would "create upward pressure" on premiums for the remaining insured members. The changes require the accounts of members with less than $6000, that have been inactive for 13 months, be transferred to the Tax Office. Another change will require members...
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Australia’s Property Boom Is Well and Truly Over Money Morning20/07/2018 Julija Zivanovic Editor, Money Weekend   House prices in Australian capital cities have been booming for the better half of the last two decades. With our capital cities expanding at lightning rates thanks to international and state migration, it seemed like the boom would never end. The extent of our booming economy has been so incredible, it has become the norm for us in Australia. Australians aren’t really conditioned to expect stock market or real estate falls or depressions. But like all things, what goes up must come down. As reported by The Sydney Morning Herald earlier this week: ‘Only half the properties that went to auction in Sydney and Melbourne on the weekend found buyers. ‘Australian property owners are waking up to the mother of all housing debt hangovers. That’s what happens, you see, when you go on an unprecedented...
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Jobs boom puts RBA under pressure to raise interest rates Australian Financial Review Jul 19 2018 7:38 PM Jacob Greber   The lowest trend jobless rate since late 2012 – when the Reserve Bank of Australia's cash rate was more than double today's 1.5 per cent – is raising fresh concerns households and investors are too complacent about the likelihood of rising borrowing costs. With official labour market data for June showing employers added three times as many jobs as forecast, some economists are warning the Reserve Bank risks being blindsided by a more rapid fall in the 5.4 per cent unemployment rate and faster inflation. "There are a range of feasible scenarios in which it is increasingly difficult to justify the cash rate so far below 'neutral', which is around 3.5 per cent," said Andrew Boak, a senior economist at Goldman Sachs. "The key things to watch are whether upward...
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Villawood says developers paying builders 'secret commissions' Australian Financial Review Jul 19 2018 11:00 PM Larry Schlesinger   Villawood Properties boss Rory Costelloe says builder rebates – or "secret commissions" – have returned to the Melbourne land market. Mr Costelloe, the executive director and co-founder of Victoria's biggest private land developer, said the rebates, which developers offer to builders to entice buyers to their estates were a sign of "stress in the market". He made these comments after Villawood, which does not offer builder rebates, beefed up its own pipeline, snapping up an 89-hectare site near Geelong for $40 million with the capacity to provider more than 1100 homes. The commissions are secret – and unethical if not illegal – because the builder does not tell the buyer they are recommending they build a home in a particular housing estate only because they are getting a kickback from its developer. Mr...
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APRA delivers timely reminder on Hayne probe Australian Financial ReviewJul 19 2018 11:00 PM The AFR View   The job of the Hayne royal commission into the banks is to dig out bad behaviour towards customers. It is not a review into the role of banks in the economy, or how the financial system should be most soundly structured. The commission is designed to look at the banks at their worst, not at their best. It has not disappointed. There has been a horror show of sloppy lending practices, falsely collecting payments and lies to the authorities. Not a scrap of such behaviour can be justified. But it is a long way from the whole story. The most important regulator of the banks is the Australian Prudential Regulation Authority, whose job is to make sure they remain financially sound, that they will not cause instability for other banks, and that they...
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Aussie families default on mortgage repayments after banks underestimate their spend news.com.au JULY 19, 20185:05PM Stephanie Bedo, Frank Chung   AUSTRALIA’S banks have been caught fudging their numbers, using a dodgy financial tool to vastly underestimate borrowers’ expenditure in order to write loans people will never be able to repay. It’s called the Household Expenditure Measure (HEM), an estimate of the bare minimum for essential living costs, along with limited discretionary spending — and borrowers are finally realising their banks got their figures wrong by using it. Now Aussies across the country have been left with investment properties they can’t afford or are being forced to sell their family homes and enter the rental market as they struggle to stay afloat and default on their mortgage repayments. Experts have slammed the banks’ use of the tool, with the person who invented it saying it was “alarming” they weren’t using it as...
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Sacked Westpac adviser received 'high achievement' ratings Sydney Morning Herald 20 July 2018 12:00am Clancy Yeates   A Westpac financial adviser with a long history of compliance problems was allowed to keep advising customers for years before being sacked and even received several consecutive "high achievement" ratings in performance reviews, court documents say. In a landmark case, the corporate regulator last month launched action against Westpac over allegedly poor advice given by former adviser Sudhir Sinha, who worked at the bank from 2001 until he was dismissed in 2014. Corporate watchdog ASIC has launched legal action against Westpac over allegations of poor financial advice given by a former adviser. The Australian Securities and Investments Commission (ASIC) alleges Mr Sinha, who was last year slapped with a five-year ban, breached a duty to act in customers' "best interests," and provided inappropriate advice. It has taken the rare step of pursing Westpac, which...
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Australia’s expensive real estate problem remains a dirty little secret DomainJul 16, 2018 Iain Gillespie   Nobody knows how many billions of dollars in dirty money is pouring into Australia’s housing market, but global authorities describe local real estate as a prime target for money laundering – and you may have paid more for your house because of it. The likelihood of cashed up crooks increasing house prices is much greater than many people realise, given the hidden nature of the problem, a lack of regulation in the Australian real estate industry and the staggering sums involved. AMP chief economist Shane Oliver says criminals willing to pay extra to wash illicit funds have probably already had an impact on the high end of the housing market. “Even one transaction can have a huge effect that pulls the whole lot up.” Real estate agents say corrupt money can also influence average house...
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ANZ backs moratorium on drought-stricken farmers, admits to misconduct Sydney Morning Herald 17 July 2018 5:04pm Clancy Yeates & Sarah Danckert   ANZ Bank has backed a moratorium on the repossession of drought-stricken farms and, along with the Commonwealth Bank, admitted to "misconduct" in their treatment of some rural customers. The banks were responding to criticism this month by the banking royal commission's top lawyer over their overly tough treatment of farmers. Senior counsel assisting the commission, Rowena Orr, this month delivered "open findings" that could be made by commissioner Kenneth Hayne of poor treatment of farmers by ANZ, CBA, National Australia Bank, Bendigo and Adelaide Bank, and Rabobank. In submissions released on Tuesday, ANZ admitted to several cases of misconduct towards customers it acquired when it bought agricultural lender Landmark in 2010. But it argued that most of the case studies presented by Ms Orr showed behaviour that fell below...
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Young borrowers at risk: RBA The Australian 12:00am July 18, 2018 David Rogers, Samantha Bailey   The Reserve Bank has singled out younger households with lower incomes, less stable employment and smaller savings buffers as a risk to the economic outlook in the event of any shocks. In the minutes of its July board meeting, the RBA said that after a detailed discussion of Australia’s high household debt — informed by a “special paper” prepared for the meeting — “household balance sheets continued to warrant close and careful monitoring” amid increasing risks to the global economic outlook from rising US-China trade tensions. The comments come as borrowers are starting to feel the pinch from a round of out-of-cycle interest rate hikes on variable mortgages by regional lenders and credit unions in recent weeks, blaming higher funding costs. Borrowers with a mortgage of $1 million are on average paying an additional $715...
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Property scam snares self-managed super funds The Australian 6:56am July 18, 2018 Robert Gottliebsen   Lurking behind the decision by Westpac and other big banks to stop lending to self-managed superannuation funds is a property racket that threatens significant losses to those who were caught. It is highly likely that some banks will be caught up in it but I strongly emphasise that I have no knowledge of which banks may have been ensnared and just because Westpac has withdrawn from the property lending superannuation market does not mean they have been caught. But many of those self-managed super funds who were caught are already down around 20 per cent and we have a big “blame game” ahead of us. Before detailing how the racket worked, I want to background the situation. The self-managed fund movement really boosted the quality and depth of our superannuation movement at a time when too...
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ASIC's Peter Kell says advice firms start dobbing in 'bad eggs' Australian Financial Review Jul 17 2018 5:06 PM James Thomson   Deputy chairman of the Australian Securities and Investments Commission, Peter Kell, says financial advice firms are finally starting to dob in dodgy advisers and tell the regulator when they move firms. The royal commission has probed the propensity for advisers with poor records to simply shift to another firm, and ASIC has created a register of financial advisers to help the industry and consumers track adviser movements. Mr Kell said on Tuesday that after many years of sweeping the records of their poor advisers under the carpet, the under-fire wealth industry is starting to share more information. "We are getting more financial advice firms coming to us and reporting bad apples," Mr Kell said on the sidelines of a business event in Melbourne. "That was always a source of...
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CBA farm account bungle puts risk back in the spotlight Australian Financial Review Jul 16 2018 8:09 PM James Frost   Systems that allowed thousands of Commonwealth Bank customers to be overcharged by almost $8 million have been described as inadequate and in breach of the law in a development that has thrust the bank's risk department back into the spotlight. The frank assessment of CBA's systems in relation to its overcharging of farming finance customers was made by the Hayne royal commission's senior counsel Rowena Orr, QC, in open findings published quietly in a standalone document 10 days ago. Under a subheading of "Inadequacy of internal systems", Ms Orr said it was open to the commissioner to find two examples of misconduct from the case study including a breach of the Corporations Act that could be attributed in part to CBA's sloppy "control environment". "The errors were not prevented or...
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Superannuation’s decade of failure exposed The Australian 12:00am July 17, 2018 Anthony Klan   Five million superannuation accounts holding $260 billion and managed by the Big Four banks and financial services companies AMP and IOOF have delivered average annual returns less than the risk-free “cash” rate over the past decade and many have performed below the rate of inflation. Audited performance data provided to the Australian Prudential Regulation Authority by Westpac, NAB, CBA, ANZ, AMP and IOOF shows the biggest super fund operated by each of those institutions delivered total average annual returns to members of 2.1 per cent to 3.1 per cent over the decade to June 30 last year. At the same time, the average annual rate of return on risk-free “cash” investments was 3.8 per cent, meaning the owners of those five million super accounts would have been better off had the money been placed in low-interest term...
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SMSF property lending is drying up as Westpac pledges to stop lending The New Daily 10:00pm, Jul 16, 2018 Rod Myer   Westpac has slammed the door on self-managed super funds, pledging to stop lending to them at the end of July. That effectively cuts off the supply of funds for SMSF property deals from the big banks. It is a move that will dampen an already weak investment property market and comes after the ALP has pledged to outlaw SMSF borrowing if elected. In a statement on Monday, Westpac said it would be “withdrawing from sale our SMSF Home Loan product and Business Lending to SMSFs, effective Tuesday 31 July 2018″. But it will continue to service existing customers. As the biggest lender to the area among the big four, the move is a body blow to SMSF borrowing. “As far as we are aware, Westpac is the only major...
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Banks face cash squeeze as fund managers, households draw deposits Australian Financial ReviewJul 15 2018 11:09 PM Jonathan Shapiro   Australia's banks will be forced to find an additional $70 billion of funding as superannuation funds shift out of cash into international assets while indebted households draw down on their savings. The widening of the so-called "funding gap", which measures the difference between bank loans and deposits, comes amid a crisis-like blowout in short-term funding that is increasing bank funding costs and has already prompted the non-major banks to enact "out-of-cycle" mortgage rate rises. The gap between loan and deposit growth has increased from $390 billion in the second quarter of 2017 to $457 billion in the first quarter of 2018, resulting in an additional funding bank requirement of $60 billion to $70 billion, according to analysis by National Australia Bank economists. The rising financing demands may further increase funding cost...
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