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BFCSA
MORTGAGE
DISTRESS SOS

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
Westpac hit by $510m provision, and Hayne compo costs could rise Australian Financial Review Apr 30, 2019 6.22pm James Eyers   Failings by financial advisers operating under Westpac Banking Corp's licence have triggered a $510 million pre-tax provision and the bank has flagged compensation bills could rise even higher. Chief executive Brian Hartzer described the $357 million after-tax hit to the first-half profit as "disappointing" but said it was part of Westpac's efforts to mop up "outstanding issues" in the scandal-prone financial advice sector. Before its first-half profit numbers were released on Monday, Westpac said advisers operating under its Magnitude and Securitor licences would trigger "potential repayments" to customers of $297 million. This is more than the $260 million by which first-half profit will fall due to the conduct of the bank's own salaried advisers, announced on March 25. The customer repayments for misconduct by "authorised representatives" represent 31 per cent...
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ANZ flags 'stubbornly low' wages as mortgage stress climbs Australian Financial Review May 1, 2019 10.51am James Eyers, Sarah Turner   ANZ Banking Group chief executive Shayne Elliott is concerned about a spike in customers struggling to repay their mortgages, warning "stubbornly low” wage growth in a weakening housing market could prompt more defaults. ANZ said on Wednesday that 5 per cent of its home loans are in negative equity as at March, non-performing loans have ticked up and mortgages more than 30 days due had risen sharply. The bank told analysts during a briefing the spike in short-term bad debts reflected borrowers taking longer to work out their financial situation as housing prices fell. “The market will be nervous about the sharp deterioration in mortgage arrears in our view,” said UBS analyst Jonathan Mott. The rise in mortgages more than 30 days overdue to around 2.25 per cent as at...
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Developers exploiting loophole on property advice Australian Financial Review Apr 30, 2019 6.26pm Duncan Hughes   Developers are exploiting a regulatory loophole to offer lucrative commissions to accountants, financial advisers and mortgage brokers for recommending real estate, according to industry specialists. The regulatory gap excludes real estate as a financial product, or investment, which means advisers can lawfully accept more than 8 per cent commission to recommend property, or more than three times the usual rate. Some advisers failing to rebate part, or all, of the commission payments are also disguising the windfall by disclosing payments as consultancy, or marketing fees, in statements provided to clients, according to industry specialists. “Ethical financial advisers abhor the commission offerings that are being continuously sent to us,” said Paul Moran, principal financial planner with Moran Partners. “There are a lot of people masquerading as financial advisers who are fundamentally accountants or mortgage brokers. Wearing...
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'We are devastated': 200 homeowners caught up in Darwin's non-compliant building probe ABC News 1 May 2019 Jano Gibson   When Troy Rivers was searching for an apartment to buy in Darwin four years ago, he found the perfect place, in a brand-new 12-storey building in the CBD. "I just wanted somewhere safe for [my wife], so she would feel secure," Mr Rivers said. "I liked the look of it … and thought this would be a nice place to live." But yesterday he received a letter from the Northern Territory Government, advising that his building, named Catalyst, on Finniss Street contained non-compliant structures requiring urgent assessment and rectification. "We are pretty devastated because obviously it's going to cost us more money," he said. Mr Rivers is one of about 200 property owners in nine separate residential apartment blocks caught up in a situation that centres on the work of a...
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Business leaders urge RBA to resist rushed cuts Australian Financial Review May 1, 2019 4.53pm Vesna Poljak, William McInnes, Angela Macdonald-Smith, Carrie LaFrenz   Business leaders from the utilities sector to car parts and insurance are unified in their view that the Reserve Bank of Australia should not cut interest rates, and definitely not before the federal election, because the cash rate is already so low that further easing seems pointless. "I don’t think it’s going to make any difference," NIB Holdings chief executive Mark Fitzgibbon said on the sidelines of the Macquarie Australia conference in Sydney on Wednesday. "The cost of money is clearly not the issue for investment or growth anymore." Mick McCormack, the CEO of gas pipeline owner APA Group, warned a pre-election interest rate reduction ran the risk of "tainting" the political messages in the run-up to the poll. The Reserve Bank's next meeting is on Tuesday...
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Big Four: inquiry into government consultancy binge gets buried MichaelWest.com.au Apr 26, 2019 ‘Triskele’   The inquiry into the federal government’s spendathon on government contracts, especially on that global elite of corporate welfare recipients, the Big Four audit firms, has been axed — because of the federal election, we are told. The paradox is that the blow-out in government costs comes despite claims by the Government that the outsourcing binge is all about “small government”. Triskele reports. AFTER three days of public hearings and dozens of submissions into the Government’s unexplained splurge on consultants – particularly the biggest winners the Big Four accounting firms – the federal Joint Committee of Public Accounts and Audit has quietly taken the Inquiry into Australian Government Contract Reporting out into the back paddock and dispensed it with a quick bullet to the head. Or, in other words, it has let the inquiry lapse without issuing...
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ASIC mulls test case on CBA directors’ duties The Australian 12:00am April 30, 2019 Richard Gluyas   There’s widespread nervousness among company directors ahead of a decision by ASIC on whether to mount a directors’ duties case against Commonwealth Bank over its response to 2016 warnings from Austrac that the bank’s ATMs were being used for money laundering. The watchdog is likely to make an assessment of its options before the end of the year. For directors, the big issue is ASIC’s adoption of a broad or narrow interpretation of their duties. Given the Hayne royal commission’s spotlight on culture and ASIC’s new-found aggression, the fear is that the agency’s new enforcer, Daniel Crennan QC, could mount a test case, arguing that the CBA directors failed in their duty to set an appropriate culture. If successful, a significant breakdown in institutional culture would become a recognised breach of directors’ duties. An...
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Housing price decline is slowing, analysis reveals The Australian 12:00am April 30, 2019 Mackenzie Scott   Green shoots may be appearing in the housing market, with signs that credit is loosening as the ­national house prices decline slowed in April, according to preliminary monthly data from property researcher CoreLogic. The daily Hedonic Home Value Index, which aggregates data from the five largest capitals, has shown the national rate of decline improved in the first 28 days of April. The rate sits at -0.5 per cent this month compared to -0.7 per cent in March. But it is not all good news, with CoreLogic head of research Tim Lawless warning weak housing conditions are likely to cement downward trends. “Values aren't falling quite as much as they did the month prior, but we are also seeing more capital cities and regional markets move into a downturn. On one hand we are seeing...
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'A milestone': Sydney prices could fall below $1m Australian Financial Review Apr 30, 2019 12.01am Ingrid Fuary-Wagner, Michael Bleby   Sydney's median house price will fall below $1 million within the next two months even if the property downturn eases slightly from its current pace. Sydney house prices have now fallen 14.3 per cent from their mid-2017 peak, including a drop of 3.1 per cent over the March quarter, according to Domain Group's latest house price report. House prices in Brisbane stalled over the year, recording a slight drop of 0.3 per cent, after six years of continuous annual growth, while in Canberra prices fell by 2 per cent over the 12 months to March, the largest price fall recorded in a decade. Melbourne house prices fell 10.4 per cent over the year and 2.4 per cent over the quarter. Unit prices declined in all capital cities over the quarter except...
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$10bn housing splurge one way to boost spending, inflation The Australian 12:00am April 30, 2019 Adam Creighton   Japan, here we come. Not literally, but it’s increasingly clear the land of anime and sushi has reached our economic destiny — zero interest rates and massive central bank interference — first. A little more than 20 years ago, when the euro was still a baby and Pokemon was on the drawing board, the Bank of Japan cut its official interest rate to zero to spur its economy. Where is that rate today? Negative 0.1 per cent, more or less zero, still. Since then, official interest rates in every developed country have trended towards zero. Australia’s has fallen from 4.75 per cent in 2011 to 1.5 per cent in 2016. Despite repeatedly suggesting the next move would be up, the Reserve Bank of Australia is again under pressure to cut after it emerged...
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Macquarie joins calls for election campaign interest rate cut The Australian 12:00am April 30, 2019 Perry Williams, David Rogers   Macquarie has joined a growing call for the Reserve Bank to cut interest rates ahead of the May 18 election as weak inflation, GDP growth and house price uncertainty stall momentum in the ­nation’s economy. The consensus among economists and traders has rapidly shifted towards earlier interest rate cuts since the surprisingly low inflation data for the March quarter was released last week. The bank’s chief economist, Ric Deverell, said momentum had shifted to a cut at the RBA’s May 7 meeting followed by a second cut in the cash rate in August. “Governor (Philip) Lowe has talked about how he thinks wages and inflation are gradually moving back to more normal growth rates. And I think the CPI that came out last week was sufficiently weak that it brings into...
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RBA weighs alternatives to a cut Australian Financial Review Apr 29, 2019 2.24pm Christopher Joye   Industry participants believe the central bank and banking regulator are considering a targeted alternative to a cut to the official cash rate, which would involve lowering the minimum 7.25 per cent interest rate banks use when assessing a home loan borrower’s repayment capacity by 50 basis points to 6.75 per cent. This would improve the average home buyer’s borrowing capacity by more than 5 per cent and increase demand in the weak housing market, which was a key driver of the low March quarter inflation numbers (newly built house price inflation declined by 0.2 per cent while rental inflation was very soft at 0.1 per cent). In December 2014 the Australian Prudential Regulation Authority (APRA) introduced the minimum 7 per cent interest rate on all home loan serviceability tests as a part of its suite...
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Banks, financial institutions may face criminal legal action from banking inquiry before federal poll Herald Sun April 28, 2019 4:58pm Jeff Whalley   Major financial institutions including banks are bracing for possible criminal legal action over scandals unearthed at the finance royal commission - and they are not ruling out facing the first of these before the election. The corporate cop — the Australian Securities and Investments Commission — has a shopping list of more than 20 matters it is looking at in the wealth management area in which criminal offences could have been committed. ASIC chief James Shipton has tipped a more aggressive approach by the regulator after claims at the commission it was too timid. Financial institution insiders talked to by the Herald Sun said they were not ruling out seeing some criminal claims coming before the May 18 poll. In his February 4 final report commissioner Kenneth Hayne...
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APRA warns climate uncertainty 'no excuse for inaction' Australian Financial Review Apr 29, 2019 12.00am James Fernyhough   The prudential regulator told financial services companies there is now "no excuse for inaction" on climate change, warning there is a "high degree of certainty" that financial risks will materialise as a result of the warming climate. The warning came in a new report in which the Australian Prudential Regulation Authority rates the sectors it regulates on their actions to address the risks posed by climate change. The paper gives the industry a broadly positive review, with general insurers, banks and super funds doing particularly well. However life insurers and private health funds were singled out as the laggards among APRA-regulated firms. It also found only a minority of companies – about one in five – were meeting voluntary climate risk disclosure targets set out by the Task Force on Climate-related Financial Disclosures,...
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Huge loophole in law to ban commissions Australian Financial Review Apr 29, 2019 12.00am Joanna Mather   Draft laws designed to eliminate conflicted remuneration are ineffective and “disingenuous”, AustralianSuper says. In a submission to Treasury, AustralianSuper strategic policy advocate Louise du Pre-Alba says draft legislation and regulations for ending grandfathered conflicted remuneration will in fact entrench the payments. This is because the regulations allow for the establishment of a scheme under which “benefits that would otherwise have been paid as conflicted remuneration are rebated to affected clients”. “Allowing conflicted remuneration to continue in regulations supporting a bill designed to end grandfathered conflicted remuneration is disingenuous and arguably misleading to Parliament and its constituents," the submission says. The Future of Financial Advice laws banned billions of dollars in upfront and trailing commissions but a concession by the then Labor government allowed pre-2013 arrangements to continue; they were "grandfathered". The final report of...
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Australian house prices plunge by $40,000 from 2017 peak, research shows By 9Finance a day ago Property values across Australia have plunged by more than seven per cent since the 2017 peak as the housing slump deepens. New CoreLogic research shows dwellings lost $40,590 in value – a 7.4 per cent drop - since October 2017. But the declines across the combined capital cities are even more stark, with values plummeting 9.2 per cent – or $59,478 – since September 2017. Perth and Darwin suffered the biggest losses, with values down by 18.1 per cent and 27.5 per cent respectively. In the biggest property markets, Sydney and Melbourne, values were down by 13.9 per cent and 10.3 per cent respectively. CoreLogic research analyst Cameron Kusher said seeing the declines as dollar figures “is a stark reminder of the actual losses”. The percentage change in Australian property values from the 2017 peak...
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Reserve Bank should call in the helicopters to drop money on Australian households: Citi ABC News26 April 5:27pm Stephen Letts   The RBA showering Australian households with money from above may sound like a desperate move, but it is one worthy of consideration according to the economics team at the big investment bank Citi. Rather than slashing interest rates to zero, or below — a ploy adopted by several big central banks — Citi argues the RBA would be better off embracing the unconventional policy of "helicopter money". "It could take the form of government cash handouts to households for spending, financed by a permanent increase in RBA money supply," Citi's chief Australian economist Paul Brennan said. "Unlike negative interest rate and quantitative easing policies, helicopter money can be designed to boost economic efficiency [e.g. lower unemployment] whilst limiting negative spill-overs to other areas like financial system stability [e.g. asset bubble...
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APRA hits IOOF with show cause notice The Australian 12:00am April 27, 2019 Ben Butler   Troubled financial services group IOOF has breached its licence conditions by failing to meet a deadline to set up a special office to oversee its role as a superannuation trustee, stalling a deal in which it hopes to take on 700,000 clients of big four bank ANZ. IOOF on Friday said it had failed to meet a March 31 deadline to set up the office that the Australian Prudential Regulation Authority slapped on it in December as part of a package of action against that company that included legal action to ban key IOOF executives including then-managing director Chris Kelaher and then-chairman George Venardos from the super industry. The failure to comply makes it even more difficult for IOOF to complete its takeover of ANZ’s wealth business, OnePath, which is dependent on trustees at the...
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Banks under pump as costs soar The Australian 12:00am April 27, 2019 Richard Gluyas   The major banks will have “nowhere to hide” when they unveil their interim profit reports, as revenue pressure intensifies, the bad debt cycle bottoms out and remediation and compliance costs continue to soar. The gloomy outlook is contained in analyst reports ahead of ANZ Bank kicking off the half-year profit reporting season on Wednesday, followed by National Australia Bank on Thursday and Westpac on Monday, May 6. “We expect underlying revenue trends to be weaker than expected,” Macquarie said. “Furthermore, while credit conditions remain generally supportive given an uncertain economic outlook, we see downside risk to impairment charges.” Macquarie said its underlying forecasts were below consensus, and there was a risk that the outcome could be worse than expectations. The major-bank sector suffered extreme turbulence in 2018 as the Hayne royal commission spotlighted widespread misconduct. The...
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  Cutting interest rates won’t lift inflation, it will only hurt retirees The Australian 12:00am April 27, 2019 Alan Kohler   Don’t bother cutting rates, it’s pointless. That 0.0 for the March quarter headline CPI will sit for a long time as a badge of the Reserve Bank’s impotence. Coming up for three years of the cash rate on hold at the record low of 1.5 per cent, on top of the longest economic expansion in history, and just a week after news of another solid lift in full-time employment, inflation has fallen to zero. So now economists are clamouring to predict a May rate cut and the headline on the story in The Australian on Wednesday went as far as predicting: “RBA could cut rates four times this year”. As if reducing retirees’ incomes again is going to make any difference. Apart from anything else, the borrowers who theoretically benefit...
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Don't expect rate cuts to end the housing slump Sydney Morning Herald April 26, 2019 5.00pm Elizabeth Knight   Australians may be already suffering from election fatigue, but house prices is a topic that never gets old. There will be many homeowners desperately hoping that a widely-predicted cut in the Reserve Bank’s cash interest rate in May will breathe some life into the property market. The bad news is that even a 50 basis point (half a percentage point) cut, which most economists are expecting by later this year, is unlikely to make much of a difference to the demand for housing. And demand is one of the main determinants of price. That is because unlike in previous property cycles, the fall in house prices which began some 18 months ago was not a response to higher interest rates. Nor was a slowing down in economic growth a trigger for the...
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Housing bust could be over quickly Australian Financial Review Apr 26, 2019 11.31am Christopher Joye   If the RBA cuts interest rates, which financial markets are handicapping as certain by July, Australia’s housing bust will be over. The RBA’s own internal research estimates that a 1 percentage point reduction in the cash rate would boost house prices by 28 per cent, assuming it is fully passed on by banks (and borrowers consider the change permanent). This column was the first to flag a radical reduction in bank funding costs and predict that banks would start unilaterally lowering home loan rates, doing some of the heavy lifting for the RBA. We "faded" the blowout in these funding costs in 2018 by buying exceptionally cheap assets linked to them. The bank bill swap rate (BBSW), which proxies the major banks’ short-term borrowing costs, and longer-term major bank credit spreads have both compressed sharply...
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Labor will make tax haven blacklist a 'first-order priority' Australian Financial Review Apr 23, 2019 6.22pm Joanna Mather   The Cayman Islands, Monaco and Samoa are likely contenders for a European Union-style blacklist of tax havens to be drawn up as a "first-order priority" by a future Labor government. If it wins on May 18, Labor will amend the Corporations Act to require companies to declare to shareholders any dealings in "international material risk jurisdictions". The Corporate Tax Association describes the measure as unnecessary given the large number of transparency initiatives already in place. CTA executive director Michelle de Niese said her organisation had been a "strong and vocal advocate" for tax transparency. But she questioned the need for more regulation in addition to the 28 integrity and disclosure changes to the corporate tax system over the past six or so years. "Our concern is and always has been the misleading...
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Ross McEwan’s exit from RBS fuels NAB leadership chatter The Australian 5:34pm April 25, 2019 Richard Gluyas   The odds have shortened on Ross McEwan as the next chief executive of National Australia Bank after his surprise resignation yesterday from Royal Bank of Scotland. Mr McEwan, who has been chief executive of RBS for 5½ years, said it was the right time to leave, with most of the restructuring work done and the trouble-plagued bank on a “strong and profitable footing”. “I have delivered the strategy that I set out in 2013 and now feels the right time for me to step aside and for a new CEO to lead the bank,” he said. RBS said Mr McEwan had a 12-month notice period and would remain in his position until the appointment of a successor and completion of an orderly handover period. A departure date would be confirmed “in due course”....
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'Dangerous' low interest rates need infrastructure boost Australian Financial Review Apr 26, 2019 — 12.00am John Kehoe   EXCLUSIVE  The federal government must unleash a bigger infrastructure stimulus  to save the Reserve Bank of Australia cutting interest rates dangerously low, former senior RBA and Treasury officials said. Leading economists Warwick McKibbin and Peter Downes said Canberra should use record-low government borrowing costs to invest in high-return projects to add immediate inflationary pressure to the economy and lift productivity longer term. They also called for the government to revamp how it separates capital spending and recurrent payments in the federal budget, to put less emphasis on the underlying cash balance. Mr Downes, a former top economic forecaster at Treasury and the OECD, said macroeconomic policy was in a “very dangerous position” because the RBA’s cash rate could approach zero during potential international economic shocks and a downswing in apartment construction. “That means...
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