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Low-doc loans make up one third of ASIC submissions to Senate

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Australian Broker | 20 Jan 2014, 06:55 AM Agree 0
The final submissions to the Senate committee’s review on ASIC’s performance are in, and low doc and no-doc loans are a hot topic.
  • Keith of the west | 20 Jan 2014, 09:00 AM Agree 0
    Hang on here banks supported these deals prior to Gfc a share of blame pleae don't just target brokers for writing the business
  • Hysteria | 20 Jan 2014, 09:53 AM Agree 0
    If I'm reading this correctly; the complainant over inflated his income on a low doc dec., which he would have no doubt signed; then got into trouble, then blamed everyone else for what he falsely claimed - and all occurring before GFC?....sounds like everyone else's fault.
    'Nanny State' aside...Personally I've written low docs for a number of years as part of my portfolio, and not one has ever missed a single payment...all having run successful businesses for many years.
  • Denise Brailey BFCSA (Inc) | 20 Jan 2014, 05:25 PM Agree 0
    Banks supported these deals and still do with use of bank generated service calculator to produce englobo figures after the LAF had been signed and NO COPY of LAF ever given to customers. Consumers had no idea. Dear Hysteria: NO the complainant did not over inflate the income - the bank calculator devised the phony income, without his knowledge or consent. I know this person and have seen his documents. Consumers are blaming the banks for approving the fraudulent loan. That's why so many complained to Parliament. Yes noted, they are not blaming the broker who was following instructions from the Lenders and BDMs. In 36% of cases there was no broker involvement.
  • Dodgy Customers | 20 Jan 2014, 06:08 PM Agree 0
    I had a customer drag me and the lender through a 2.5 year matter in the Supreme Court, when it came to the trial the customer stood on the stand and admitted to the judge that he had got someone to work out what he would have to declare to get a loan and then put it on the application I gave him. Ohhh but we overlook the conduct of customers giving false statements, as it is always the broker or the bank. Also don't rely on your PI insurer they will refuse to indemnify you all the way, as the brokers is guilty until proven innocent. by the way the customer lost, and so he should the dodgy @#$%^.
  • Dave Robinson | 21 Jan 2014, 09:07 AM Agree 0
    Dodgy Customers - Now there is the other end of the scale, 2.5 years of it!! Were you able to claim back costs or any compensation in relation to the case?

    Goes to show that not all of these loans were manipulated by banks and/or brokers it shows that consumers had a role to play as well.
  • Denise Brailey BFCSA (Inc) | 21 Jan 2014, 11:33 AM Agree 0
    Dodgy Customers - yes of course there will be. If I see them I do not assist. It is occasional. The fact he had funds to take the broekr to court is out of step with the people I deal with. They have been stripped of assets, mired in debt and no funds for legal advice let alone court. Its a tragedy of immense proportions and Parliament is watching and it should be. WE have the evidence its the Lenders. If you are a broker and have a loan or your family have a loan - ask for your LAF. Sadly you may need our group. It is run on a shoestring. I entirely sympathize with decent brokers making a tough honest living. No-one is watching the major lenders under self regulation.
  • Dodgy Customers | 21 Jan 2014, 12:14 PM Agree 0
    To :Dave Robinson, to answer your question the PI insurer came good after judgement, go figure. by the way the 2.5 years was not because of a borderline case, it is just the long drawn out process of litigation in court. The customer produced affidavits for two years that were found to be false under examination. They have the attitude that if I am going down, I am going to take everyone with me. They should pay their mortgage like every normal person does!! These champions of fraudulent customer may want to watch the stones the overturn in their crusade !!!
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