Loan Servicing: Many cannot Qualify for what they have

Very well said Peter.

 

What are the penalities for mortgage fraud?

 

Depends on the actual crime - 5 years imprisionment possibly.

 

Totally fine for the above comment.

But there's always 2 sides to a story and we only heard yours, and your not qualified in anyway to charge and criminally convict anyone. By naming and shaming ex clients prior to fare investigation by the right authorities on a public forum is just plain wrong.

 

It's the ethical race to the bottom. Some brokers are outright criminals - they get the business the good brokers reject. So they get those trailing commissions and thus, making more money, succeed and grow. The good brokers in the meantime are faced with not making as much money.

I imagine there are some brokers out there who are basically honest but don't look as hard at what information is given to them because they know they'd uncover something that would force them to act. Their "obliviousness" is a ethical and probably slight legal shield.

It's why Australia needs to bring in the money laundering legislation that brings lawyers, real estate agents, brokers, and so on into the reporting loop. Right now it's don't ask, don't tell and plenty of people are getting by on that mutual lie. The broker pretends those payslips are legitimate and the borrower lies they are and the bank doesn't ask questions and another loan is issued that never should have been.

 

Brokers are already required to report to AUSTRAC any suspicious activity and trained in anti-money laundering as a part of our compliance requirements.

 

Not quite accurate. Paying a lower rate will ONLY assist borrowing capacity if you are borrowing with one of the very last few lenders who arent assessing with highly sensitised assessment rates. With 95% of lenders, whether you are paying 1% or 5%, you'll be assessed as paying 7.5% +. So lower rates will add didly to your borrowing capacity, unless you use those lower rates to reduce debt. Then you'll see capacity improve. And I'm not talking about parking funds in Offset. That reduces repayments but doesn't reduce debt levels. I'm talking about actual principal reductions on the debt.

 

Hey euro, which lenders aren't assessing highly sensitive rates at the moment?

 

NAB is probably the standout of the mainstream lenders. They do apply a loading onto the proposed loan as well as existing loans, but it's much more generous overall than almost everyone else.

There are some other lenders that don't apply any loading onto existing loans as they're outside of APRA review. They have their own quirks however.

 

Yep....very dangerous territory....

No true....depends if you broker gets you into senior credit people who have that discretion.

 

I was referring to the second trache of the AML not being implemented yet: Australia must tighten its money laundering laws - MacroBusiness

 

Ive been talking about this for a good while now.... but as I don't seem to see the bigger picture, perhaps the RBA is missing it too....

RBA warns apartment 'mismatch' could hit prices, rents

rrrrrrrrrrrrrrreally? Hmmm... that's very very very very, unusual.

At which lenders are you , your magical broker and their senior credit guys achieving this level of discretionary , out of policy sign off?

 

depends which area of the bank this not only happened at one bank but across 3 now. maybe they view me as a professional investor it helps to have a unblemished credit history.. the ability to put a p&l together...a cashflow sheet.. cash reserves...etc all in a summarised sheet.

 

Which lenders?

 

Shhh...Let's not spook the horses:

• APRA will not have any effect on house prices. We are the world leader in household debt to GDP.
  
• Interest rates will never go up.
  
• Our banks are well capitalized and the safest in the world. Basel can scream all they want, they have no idea about our offset accounts.
  
• Australia and Australian banks risk rating will never drop below AAA. We also have the most stable political system in the world because we never change more than 1 prime minister per year.
  
• NG, CGT exemption, Super changes will never happen. There is no deficit problem. Even if these tax advantages are taken away, these will only push the prices up, like they did when introduced.
  
• The billions of dollars being poured into Melbourne and Sydney is all clean. FIRB was created to ensure that the stream of this money never ends.
  
• Apartment glut will only increase the prices, and in Parramatta the apartment prices are proportional to the cube of quantity of apartments under construction.
  
• Yields : What yields ? Real investors buy / hold and NG.
• Less than 95% LVRs is so 90s.
  
• Perth is doing just fine, it has a well diversified economy. Mining losses will easily be compensated by 6 extra tourist boats on swan river and 200 extra students in Curtin Uni. These boats originally to be built in Japan will now be built in Freemantle and retraining of retrenched miners is underway.
  
• Adelaide has always been a bit behind Melbourne and Sydney on the property clock.
• RBA, ABS, treasury etc, only produce squiggly lines with a temporal lag, real estate agent is the best and real time guide to the state of economy.
• An individual's value to society can be measured on a straight line starting from Steve Keen and ending at Kerry Packer. Reading growth mindset = 0.8 X Kerry Packer with bonus points for referring to it every alternate day.
  
• Why Australia really IS different

 

Lots of silence when details are asked for....

 

Lots of silence here when details are asked for, too...

 

And yesterday, I got the bad news so many others appear to have already received. As I'm about to come off the fixed rate period for my IO, loanI now no longer qualify for the loan I already have!

So, I have to just let the loan revert to the variable rate, with P&I conditions, and find an additional $450 per month to cover the expense.

I've already told the family that baked beans on toast, for every meal, for the next 5 years, is looking likely........

 

This is where a cash cow in the portfolio would have proven helpful... The 6,7,8K or more that it would generate would act as a buffer against the P&I adjustment.