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BFCSA: Interest Only Loans: Sellers taught by Bankers to look for "Anyone with a House and A Pulse."
VICTIMS discover their mortgage LOAN IS INTEREST ONLY when they come to BFCSA for help after four years when top ups finish and buffers run out and 30 year loan is then proven to be UNAFFORDABLE from Day One .
They say ""No Way, Is that true? You are kidding me!"
Good conversation INCLUDES LISTENING TO THE VICTIMS and hearing their side of the story of how they have been robbed by Bankers. At least you the public are asking the right questions. I am at the coalface of looking at over 2200 cases and rising. I can assure you in 92% of cases, the victims of mortgage fraud by banks do NOT know their loan they have signed for is an INTEREST ONLY ("IO's") loan. These Mums and Dads come from all walks of life and have one thing in common: they have had ONE (perhaps two) mortgage in a lifetime. They see a mortgage as a P & I mortgage. They understood the word "bridging." and would have instantly rejected a 30 year bridging loan!!!
The Low Docs were sold as a "normal mortgage" but less docs required. 55% sold by bank managers and the rest by Bank Agents or Brokers. The "Sellers" were instructed by BDM' s to sell these loans in a certain manner. All were IOs yet not all sellers realised that point.
The first Question I ask those who ring me for help: Did you know your loan is most likely an IO? Usual answer: "what is that?" Q: This is a 30 year agreement but did you know you can never ever pay these loans off? The response is usually: "No Way, Is that true? You are kidding me!" They did not know, for example, the loan in some cases are geared to change to P & I in say ten years.
The Loan was unaffordable on DAY ONE, so would implode within 5 years, but how do the Banks approve these loans whereby if unaffordable today, they would not be earning more money in ten years time at age 70?
I will most likely be called as a witness at the Bill Shorten Royal Commission into Banks regarding my sixteen year research into these lending practices. The mortgage contracts were only given to people on 6 minute face to face meeting where all seller manager or agents were encouraged to spend min. time on sign up for several reasons. Copy of agreement sent to them later, after settlement and there was by then NO WAY OUT.
The Document was then placed in a drawer. Bank engineers ensured all of the above processes went like clockwork. As one commentator asked recently: " Why would people take on a mortgage to pay no principle , then for ten years, wait to start paying off their mortgage? Simple answer is of course, by design of the manufacturers the victims were clueless as to what sort of product they had.....kept like mushrooms in the dark!
Which Bank would do such a thing to "valued" customers? Our Cartel of Bankers spruiked customers who had been with them for 30 years!!! All in the name of GREED. This is why the Royal Commission WILL HAPPEN despite the political obstruction and prevention of seeking TRUTH, coming directly from Malcolm T. Do you the reader believe this is good for the economy? The mass selling by Major Banks of $139 billion - $200 Billion per annum, worth of SUB PRIME LOANS. Our total loan books are now $1.8 Trillion and rising. Now APRA suggest "You Bankers better pull back a little - sell 10% less please, there's Good Chaps! Sub Primes are not a good look." Experts now estimating the product sold represents more like 70% of the loan book. Banks now say only 40%. APRA orders Banks to drop the number sold to 30%. Someone is telling porky pies. Sellers tell me they were taught to target people 55 and over, who owned their own homes and had no debt. These people quintessentially trusted and had confidence in the advice from their bank.
Trust in Bankers has been trashed and will take decades and two generations to regain, as occurred after the 1929 Great Depression, 1983, and 2008 GFC!
The victims never were investors; "Buy a second home? Are you mad? It took us 25 years to pay off the first one. How could we afford that? " Bank trained Sellers were taught to say: "Let me show you how the bank can help you....." Says the spider to the fly!!! Yet Banks turned their customers thinking around for the sake of asset-stripping: stealing homes and knowing the risks but giving the inexperienced humble older homeowner NO chance of knowing the risks. A degree of click planning was involved to get mass YES's. Sellers were taught to look for "anyone with a house and a pulse!" Most will be aged 55 and over.
Vulnerable older bank customers were spruiked using a bank induced "financial strategy." Most were on low incomes and a higher number were written down as "self employed" when in fact they were pensioners. Bank Computers were set on permanent "approval" with few , if any rejections. Loans were geared to implode within five years when banks ceased to top up buffer monies. The biggest losers are those who were sold a unit in the capital city CBD districts. Average loss there is $400,000 and rising. Average loss around $300k for those fed by Bankers into the arms of crooked House and Land Developer packages. THE PROPERTY BUBBLE IS A KEY INDICATOR OF FRAUD and places the nation at risk of an economic catastrophe but as Malcolm the Banker plays the game expected damage has grown even higher. Anyone, with a home and a mortgage is now at risk of a property crash. Hope you can all hang on....its going to be a bumpy ride.
Banks computers rubber stamped and approved all toxic loans. Same as America. Yes, mortgage lending via IO Low Docs became a $139 billion per year crime scene.
Denise Brailey#bankRC#BFCSA denise@bfcsa.com.au