WHY THE BURDEN OF BANK FRAUD AND SUB PRIME LENDING IN WILL FALL ON EVERY AUSTRALIAN
Many people have a P & I and such loans are affordable from day one. The big problem for every Australian is what if banks have been selling unaffordable, unsustainable and unverified loans riddled with fraud? How does that affect our economy? The fraud occurs inside the Processing Centre and on orders from the TOP to push through dud approvals via a computerised system. Data clerks do not know the entire process is a fraud.
The Australian sub prime fraud is very clever. The evidence contained in thousands of borrower files shows that is exactly the case and such lending practices are criminal and driven by greed of bankers. We have a sub prime industry selling around $140 billion per year of Ponzi loans that are INTEREST ONLY but that phrase has only recently surfaced. For the first couple of years the borrower victims have no idea of the fraud, nor the approval projected income scandal and no idea their loan was IO. Most say they never ever expected the loan to be approved due to low incomes.
Then these older Grandparents are trapped and the banks pay the mortgage payments for them......by various means. Banks then TOP UP and refinance the loans and interchange loans between banks to keep the PONZI going. Our financial system is very grim indeed as to the effect sub prime has on the economy. Economists understand and expressing concerns.
Banks now trying to suggest "not the same s America!!!" What rubbish - our evidence and research shows it is much worse. We have the second highest debt in the world. We are only 24 million people.
Interest Only is now a media buzz word. Years ago we called one year loans BRIDGING LOANS and were risky and very expensive to maintain. Interest Only loans of the modern and devious kind are 30 year mortgages that can NEVER EVER be paid off. But the borrowers are not told that. The victims mostly on pensions who, five years before, owned their own homes and proudly had no debt are the TARGET MARKET for nasty bankers.
People in that category are simply sold "a mortgage," suggesting a second property would help their finances. A financial strategy is mapped out for them, and one that is totally risky. IO is never mentioned in the selling of the loan. Sellers were told: "seek ARIPs as the target market, practice on your parents. if you try to sell anything else you will not make any money." Sellers are 55% bank officers and managers and 45% brokers. Evidence shows the Bank Chiefs are the culprits and engineers.
Problem is: we now have a $1.6 Trillion loan book via the Major Banks. Banks have given APRA fudged figures as to the percentage of their loan books that is sub prime.
Banks say only 40% are IO's. Banks tell lies and are no longer trusted by anyone.
Experts say more like 60% plus.
Sellers say more like 90% as "that is what we have been selling."
Few P & I's have been sold in recent times. Few loans show a deposit was paid. Credit Cards were handed out whether wanted or not with up to $100,000 LIMITS to continue and enhance the DEBT CYCLE. The entrapped and enslaved victims are aged 55 plus..............and are threatened with homelessness. Could be your own parents who are too embarrassed etc.
Entrapment is a crime as is asset-stripping, yet the criminality of this scandal has been given a governmental green light. A Royal Commission is the only solution of digging for the truth and the proper production of eventual outcomes.
Truth indicates we are all in for a scary time.
Denise L Brailey
denise@bfcsa.com.au
As President of BFCSA, I am not a victim of these scandals. I am simply helping people who come searching for assistance and are caught up in this crime scene. I use the skills I have to bring about results and change for the betterment of the community we live in.