commercial's FotoPage

By: commercial commercial

[Recommend this Fotopage] | [Share this Fotopage]
View complete fotopage

Monday, 23-Sep-2013 17:24 Email | Share | Bookmark
Missing Pieces In A Low-doc Lending Trail That Shattered Lives












The emails examined by BusinessDay suggest some banks orchestrated the reckless fall in lending standards as the credit boom approached its crescendo in 2007. One after another, they show business development managers working for banks telling mortgage brokers what to do, from the "ABNs for a day" lurk for small business people, to providing reams of detailed advice on figures to enter, and figures to ignore, as inputs in the internal computer system of the banks which determined the loan approval. Among the data dump to be released by Brailey are the passwords used by the brokers to get into the banks' computer systems. Officially, the regulators are yet to accept that any of this constitutes evidence of an investigation into the banks - only the brokers have faced scrutiny. Further to the stand-off between the activist and the regulators, Brailey fiercely rejects ASIC's claims that she had failed to provide them with loan application forms (LAFs). She instructed her members to send more than 100 formal letters of complaint to the regulator last year. Roughly half of these had LAFs with them, most with the discrepancies highlighted - usually the borrower's income had increased. ASIC confirms it received 70 letters from Denise Brailey's BFCSA members. It declined to investigate however, instead, writing back to advise the Brailey members to secure the services of a lawyer. These "bugger off" letters, says Denise Brailey, were an insult to aggrieved borrowers. <br>For the original version including any supplementary images or video, visit http://www.smh.com.au/business/missing-pieces-in-a-lowdoc-lending-trail-that-shattered-lives-20130602-2njyk.html





Low taxpayer risk with low-doc loans





"Can't claim it is risk free, but we claim our approach minimises the exposure to taxpayer," Australian Office of Financial Management (AOFM) chief executive Rob Nicholl told a parliamentary committee in Canberra on Friday. Mr Nicholl said the AOFM had no sub-prime loans among the mortgages underpinning the residential mortgage-backed securities (RMBS) in its portfolios. The parliamentary inquiry was examining the Australian banking sector in the aftermath of the global financial crisis. The collapse of the US sub-prime mortgage market in 2007 was the precursor to the global financial crisis. Mr Nicholls said the AOFM`s mortgages with at least 30-day arrears were just 1.1 per cent of its portfolio. He said this was less than that for full document and broader prime loans. The AOFM's investment in RMBS was $11.1 billion as at August 31, with the mortgage pools backing these investments being $25 billion, Mr Nicholls. Of these, less than two per cent, or just over http://commercial12.mylivepage.com/blog/2138/2859 $400 million, were low-documentation loans, a type of loan usually given to people who did not gain approval for mortgages from more traditional sources. Liberal senator David Bushby acknowledged the Labor government was right in boosting the RMBS market following the global financial crisis. Mr Nicholl said the AOFM had "some good stats" following Mr Bushby's comments that the AOFM had made money on RMBS products. <br>For the original version including any supplementary images or video, visit http://news.brisbanetimes.com.au/breaking-news-business/low-taxpayer-risk-with-lowdoc-loans-20120921-26bdg.html



View complete fotopage


© Pidgin Technologies Ltd. 2016

ns4008464.ip-198-27-69.net