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How did the Australian Banks' Toxic Mortgage Scandal run undetected for so long and who were the Engineers?
Members of BFCSA know the truth re Bankers' tricks with the lowering lending standards in Australia during the past decade or more.
No-one in the nation received a copy of their Loan Application Form (LAF) at the point of signing. No borrower in Australia was permitted to fill in their own form. Why? No applicant's were told the 30 loans were interest only and the old word "bridging loans" were mentioned. Sellers were told to "go out and make people happy."
Consumers are entitled to this 11 page document. Then shock horror: every person (all banks and all states) discovered the LAF they were presented with has signatures on only 3 pages. They had never (until recently) seen pages 4-11. The sellers (50% are bank officers, the rest bank agents) were told to fill in the rest of the pages back at the office and only after the signature was obtained. The sellers were then told they MUST work out a projected income on the bank generated service calculator which is NOT TO BE SHOWN TO BORROWER. They were told tis is a "serviceability calculator that add in tax advantages etc and is complex. In actual fact this compulsory tool was an "amortization calculator," with adjustable NSR values, dependent upon the agent/assessor. The purpose here was to manipulate the lending power to the maximum and borrowers were encouraged to maximise their own interests by using 100% loans in all cases. The bank emails to sellers explained the command to "pump up the volume."
The document LAF must be then faxed with ID documents (as an agent of the bank) to the bank for processing (a 39 page fax for application). The SCF must also be "attached or we will not process your deal." NO pre-approval documentation is handed over to the customers. Years later, Customers have to threaten banks to hand these docs over under Part 6 and Part 12 of the Privacy Act and more.
The borrower is told the loan is a 30 year mortgage called a LOW DOC, and is the "best one for you as payments are lower." Customers were not told the average loan lasts around five years and then implodes under the weight of fees and charges and; due to trickery is an unaffordable, unsustainable and unverified loan.
WHAMMO....you are caught in a devious banker plot to provide the CEO with an extra $4-5 million per year in bonuses.
Once these files are discovered Hey presto: the fraud and maladministration in lending is revealed. The banks hijacked the regulators and the EDR system of complaint handball....the so called Ombudsman's services who take 18 months to look at these voluminous cases of internal banking foul play. Why would banks do this? Lindsay David of LF Economics explained this on ABC Lateline on Thurs 21 April. "Its a Control Fraud and Ponzi Financing." Bank emails BFCSA has uncovered from Banks to the Seller Channel tell us: "Pump up the volume, double the quotas, you can now do ABN's for a day, no GST rego, target older persons ARIPS etc etc."
Bonuses all the way to $5 million p a for the CEO: the most expensive loans in the world but the sellers and punters were not told that.
The BIG PROFIT was in selling these crappy mortgages bound up in parcels or TRANCHES. The more mortgages sold, etc. the more the bank has to package up into RMBS "black boxes" with padlocks so the investor into bonds cannot see the:borrowers, and further profits are made from this racket in JUNK BONDS.
Apparently, we are told from overseas victims and managers, "BFCSA is the only consumer group in the world to gather borrowers together and discover the fraud from inside those black boxes." The only thing missing from the book and movie "THE BIG SHORT" are the Borrowers. Remember the scene when Traders tried to find some borrowers in Florida and found none?
The Tranches in America were sold to the Germans (ie Deutsche). So who purchased our crappy loans? Its not the titles or mortgages securitised in Australia,,,,it is the income stream!!!! But the borrowers had very little income!
Well that's worthy of a Banksters' sit-com comedy! You see readers, the securitisation (which everyone seems an expert on right now) is the income from borrowers of these INTEREST ONLY 30 year jumbo loans that have been sold to the target market designated by the banks: Pensioners and low income families on disability and support pensioners or even NINJA's are mostly people on welfare who owned their own and have no debt. The sellers were told: "practice on your parents first."
These Banker wankers had firstly ripped off $100 billion from retirees in the nineties and beyond and then went after the pensioners, when retirees no longer had trust and confidence in the banking sector. Now they have burned off the poorest people and those salts of the earth become the angriest when the truth is known.
Unconscionable dirty bankers managed to trash their own lending standards. All you needed to become a CEO of a Big name Wank Bank was to be willing to rip off all those who had worked hard and saved and struggled to save their own a home and /or had a suitable nest-egg of super. Effectively, these target market "profiles" had reached the end of their dream to own their own home and NO DEBT. Most of these people did not walk into a bank and ask for a loan!!!!! They were spruiked by clever marketing plans: "don't leave dead equity in your home." Or, "we can show you Mr and Mrs Pensioner how to become retirees self funded within 5 years.
Do not come to us, we will make a home visit and do you over!
Retirees with super were told: "we can show you how to make your money work better for you, how to BETTER MANAGE YOUR MONEY, (but sorry NO Royal Commission into Banks) !!!" The caps phrase is exactly the line used by Scott Morrison a couple of weeks ago in a letter to colleague to specifically pass on to a woman who has severe disabilities, has cancer, is a victim of a bad Bank and about to lose her home.
Many former sellers (brokers) are now worried about parents losing their homes, about their own home being re-possessed. Over two million Australians could well lose the home they had worked 25 years for and were finally debt free. This a national scandal and a dark episode in our history, and dying to be told. The overall source of evidence has emerged from the files of BFCSA Members who eventually and collectively came to understand the evil nature of the big picture.
Several of our members are Liberal voters but the Liberal party has managed to trash those votes by jumping into bed with greedy Bandit Bankers and ignoring Consumers' collective cries for help. Right now over 200 submissions by victims have been held up from publication by regulators APRA and ASIC, along with the 147 page LF Economics submission. The Seators are waiting toread these reports. Go figure.
There are now over 75% of Australians who believe there must be a Royal Commission into the banks. No surprises there and Labor responded by saying YES to RC as did some of the Nats, Greens and Independents and a couple of annoyed Libs on the back bench.
Its is painfully obvious, as members have stated on social media and also ordinary citizens in street interviews, BANKERS have taken ownership of the Liberal Party. Their behaviour this week is extraordinary, particularly outbursts from CBA CEO Narev and his BIG FOUR colleagues.
Idiot of the Week CBA chief Ian Narev decided to blame the bank CUSTOMERS for the hidden bank fraud! Must have been a shitty day in the office for staffers!
The Bankers are seething with rage and saying: "we and our party are united and will never be defeated.....yes we have done a few wrong things (like steal $300 billion worth of homes using toxic products and deception, and $200 billion worth of nest eggs) but if we go down you all go down." "We will bring out $20 millionfor ad campaigns against customers," "we will throw $127 million hush money at the already captured regulator......" "We will knock down the Harbour Bridge......we will, we will................"
It is my sincere belief in working with ordinary Australians, they do not take kindly to bullying, especially from the Elites. They generally tolerate the "holier and wealthier than thou set," but beware of the tide turning. Aussies are no push over and there will be NO BAIL OUT and NO BAIL IN for banks but these same citizens will make those decisions when the truth is revealed.
That's precisely why they collectively demanded ROYAL COMMISSION into the entire BANKING SYSTEM.
Bankers have already thrown money at the corporate regulator because THEY OWN THEM and their wretchedly corrupt EDR complaint handling systems. Over 2000 collective files as evidence and there is no reason to take this seriously? No reason to study the GFC and its affects on the rest of the world?
Goldman Sachs caused the 1929 banking crash, the 1983 disaster and the GFC, Australians are now reading history books. So how did Australia last another 8 years with the same toxic lending creating BIG BUBBLES in the property market? Our bankers targeted those with ASSETS in a big game play for ASSET-STRIPPING affecting at least 2 million families.
But wait there's more: two weeks ago, as Bill Shorten picked up the ball mid field and ran with it: Scandal after bank scandal: rate rigging by the big four, financial advice scandals, developer scandals, credit card scandals, mortgage fraud scandals and even scandals re commitment to compensation schemes after being caught out.
Yes the people do deserve better and they are willing to back these calls for a Royal Commission. The enter Banking System is maggoted to the Core. The machine behind the Liberal Party is nothing better than a Banking Cartel racketeering across the nation and thinking for a decade they had manged to bury all the bodies. Well the genie is out of the bottle chaps. Times Up!
If we have a rotten football team, we face facts and recruit new players, change the coach and directors and rebuild the team. That's the Aussie way.
250 years ago, a thief were likely to be shot for stealing a horse. The "soft" punishment was stocks near the Tank Stream - now Martin Place, Sydney. Colonial punishment was swift and the preferred tools were rotten tomatoes and whips, as each culprit was brought in chains to the stocks. How times have changed. So what do you think is a fair punishment for those found guilty of engineering cold calculated marketing ideas, designed to intentionally and systematically steal homes from thousands of Aussie battlers?
For the next 70 days I suggest the Libs and their cronies and masters of the universe paymasters stay tight-lipped about what is better for Australians.
There is clearly no trust nor confidence in Australian banks. Their image has been trashed by their own collective hands and evil minds. And, there is little trust left for their political foot-soldiers.
Hooray for the brave whistleblowers. The battle between Consumers vs Banks has just begun, at long last, and consumers seeking truth are on the front foot.
The rest of the world has been waking up to what has really been happening down-under. Australian citizens have known and complained for too long. Its time for change.
Specifically. the members of the Banking Cartel deserve 25 years each in hard jail time, no parole and the surrender to a consumer fidelity fund of all assets gained in each activity of fraud, forgery and criminal intent.
Enough is enough. Let the Truth Games Begin................
Ms Denise L Brailey denise@bfcsa.com.au