ITS THE BANKS, THE BANKS, THE BANKS and their SUB PRIME LENDING ACTVIITIES
Imagine a crime so ghastly, based upon PURE CRIMINAL INTENT, being permitted by Federal Policy, to spread like a virus over the lives of one million people. Mr Tepper wants to blame the Brokers because he loves the banking world. He decided to use what we consider to be false information to demonise consumers. How low can one go. And he admitting to laying a bet or two.
In Australia, there are an estimated 600,000 families caught in $300 billion of sub-prime loans scandal. That’s not just those families but the ripple down affect for the extended families who are all suffering huge loss of assets from these loans. Some are already homeless and living in caravans and tents or have moved in with relatives with precious possessions in storage.
Hundreds more victims come from the bank driven Creating Wealth Industry. Hundreds more are NINJA loans using the FHOG grant. Loans are generated at around an average 138% LVR according to our surveys.
Of course there are also a few hundred broker victims, whereby banks maliciously taught brokers to "practice on your parents and family." The world of mortgage brokers is a high turnover industry. Brokers believe in the products they sell and are not told the risks and purchase the faulty product for their own families. In banking terms this Ponzi behaviour is pure evil.
The victims of Low Doc Loans, named SUB PRIME LOANS to the rest of the World, all blame and hate the banks with a passion that surpasses the norm. Most innocent people were targeted by bankers, via a dubious financial strategy engineered by the Banks. 54% of all loans were written by bank staffers. So why blame Brokers doing their job?
The fraudulent details on the Loan Applications are widespread and NO BORROWER WAS PERMITTED to fill in their own applications in Australia: WHY????? The fraud is delivered in the form of an attached one page document known as the vital SERVICEABILITY CALCULATOR which ASIC recently admitted this was an AMORTISATION program/software: a fake income creating a protection according the bank computer.
Brokers used it as a compulsory tool which "must be attached to the LAF" and the instructions clearly state DO NOT SHOW THE BORROWER. The Borrower was not told of its existence.
Why were only three pages presented for signature and not the 11 page document? In all cases and WHY? Why were sellers, bank officers and agents all taught to do this by the BDMs?
INTENTION TO DECEIVE is the answer…..in the name of GREED and GRAND THEFT
All these victims ask for is fairness and truth in lending via a Royal Commission into the Banking Sector. We have had a de regulated environment for Bankers for 30 years which has led to giant lending Ponzi’s and a bankers’ free for all.
IN A DE REG MARKET THERE SHOULD BE A MANDATORY ROYAL COMMISSION INTO BANKS EVERY DECADE IN ORDER TO PROTECT THE ECONOMY.
Each bank CEO received an average and obscene $150 million for five years work and for approving mortgages via a rigged computer system that said YES on every loan app.
Shareholders should be worried as the BIG SHORT caper takes place.
I am demanding from either side of Federal Politics that a proper ROYAL COMMISSION will take place asap with wide terms of reference.
Most of the victims of this scam, the worst bank heist in Australian banking history, are older persons. Most Low Doc borrowers earn less than $100k ………yet we know the truth is that incomes are in fact less than $50k in most cases. This group was targeted as ARIPs by the Greedy Bad Bankers.
The Insurers wrote in their MI Policy document: “if there is fraud found on the Loan Application we will not be paying a claim.” Yes the scam involved Insurers providing phoney policies. Well how did the Insurers KNOW in 2000, there would be fraud on every LAF????
Our BFCSA surveys show that members had no idea Low Docs were interest onlyand had no idea that IF they paid the loan for 30 years they would never own their own home. Brokers did not understand this as the 30 hour training program run by banks only gave the sellers the barest of details.
The Australian Borrower victims owned their own homes and were spruiked by bankers and their agents. They were predominantly ASSET RICH AND INCOME POOR. That was the bank driven target market: “Older persons who owned their own home and are free of DEBT: A 1 credit ratings.”
No matter whether bank officers or broker agents (in the field) ALL were paid and trained by the bankers, and ALL Low Doc Loans were UNAFFORDABLE and UNVERIFIED. The LAF processing showed an identical pattern of “tick a box” loan approvals took place APPROVED BY A COMPUTER PROGRAM. Tick, Tick, Tick……and the banker time bomb ticked away for 15 years pushing the property bubble higher and higher into the stratosphere and nose bleed territory.
17 LENDERS were acting as a BANKERS DREAM CARTEL: The Mean Machine.
BFCSA collected documents from over 2000 families and these documents had been hidden for years from the long suffering victims. BFCSA quietly became a PEAK CONSUMER BODY gathering masses of evidence against these sub-prime loving Bankers.
Amortisation Calculators were part of the Bankers’ arsenal of weapons to be used unseen by the intended victims, as part of the banks’ computerised systems were used to secretly fudge incomes and yet borrowers were not shown these documents until recently. Brokers were taught to use these tools as compulsory but never understood them. They were simply told these were “Serviceability Calculators” which is pure fiction and farce.
Without these tools the Bankers could not pull off this grand theft. They lied to Parliament in 2014 and told the Senators: "the calculators are not compulsory." Utter nonsense. We have evidence: Letters from Banks to the seller channel that they were COMPULSORY. When we asked to see the individual copies, the Cartel said in unison: “we cannot allow discovery of these forms as they are commercially sensitive.”
That is banker speak for “Commercially CRIMINAL and likely to incriminate us.” This document demonstrates in EVERY CASE the Bankers’ joint intention to deceive.
THE LOANS WERE GEARED TO IMPLODE IN FIVE YEARS.
ASIC agreed in meetings: “Yes Denise, the Bankers are the Engineers, no doubt about it.” “Banks have told us all loans “settle” within five years!”
The Banking System in Australia is a CRIME SCENE with average loans approved as $500k, fees added on as $200k. The Bankers targeted ARIPS and very few NINJA loans
Where the pensioners and low income families purchased a second property – all lose their homes and units within 5 years as planned by the Bankers.
The targeted ARIP victims are the new homeless and on an aged pension. How does homelessness help the economy - permitting these toxic products to flourish in the market place?
De-reg and no supervision? It’s a free for all.
The people in Australia are already crying out for a Royal Commission after 19 Inquiries in the Senate and PJC.
Regards
Denise Brailey
BFCSA (Inc)