Reval fraud ...

Via Twitter - amazing account of a victim of reval fraud

Sam on Twitter

 

Ouch!

 

The current valuations will naturally be different to 2013.
'Sam' would need more evidence that the valuations were fraudulent at the original time.

The commissions were disclosed, so I'm not sure what the issue is there, it is a conflict of interest but 'Sam' was told about it and still proceeded.

Who is the *****?

 

Not sure

We are talking about some ones account of what happened 6 years ago.

Nathan cant not comment.

Kind of poor form until we know the hole story.

How did Cairns preform over the last 5 years?

 

What ever came from this?

 

I've got a little guy in a white gown on my left sholder going, geeez that is so wrong and illegal!

Then, on my right shoulder is another little guy smouldering with a pitch fork wondering how to get that banker's number ....

 

are you technically a victim if you benefit from it??

I was handed a pot of gold boo hoo

 

If you get into trouble class it as fraud, perpetrated by others, if things go well class it as skill.

 

Negative equity is not a pot of gold.

 

I've written about this issue a number of times and it's why I lost all respect for NB. Up until then I thought the beginning of his journey was great and he put in the hard yards to turn those crispy westy houses into pots of gold. But once I found out how he was cross coll and reval with superior comparables with his clients he fell off his pedestal for me. It was a tangled web of deceit, smoke and mirrors to create mini empires for clients who didn't have the financial savviness to see that it wasn't real and was just a house of cards.

 

Ooo wonder if banking commission will check westpac for reval fraud...

 

Not a suprise too see it was Westpac.

 

Ignoring whether it was fraud or not.

Getting higher and non real Vals. Refinancing

Assuming you didn't spend it on a holiday or a ppor.
And you kept on investing it
And assuming your cash flow is fine

Isn't this super leveraging. And if the assets aren't collapsing, a quick way to wealth?

 

It seems like this guy wasn't happy with his investment return and trying to be one of those "oh I knew I couldn't get a loan but this guy said I can so I took it" and than try to get some sort of compensation out of the current royal commission??

And given he already sense there are something fishy at the beginning but he still kept on going I find this hard to stand by his side to be honest....

 

Yes but with the overvaluations he is now in negative equity. Quick way to poverty.

 

Fairly clear that there's a negative equity position here, so what wealth actually exists?

Sounds good until the bank figures out the valuations are based on fraud, decides to liquidate an asset or two, then the whole house of cards collapses.

Even if the cash flow is good (which is isn't as good as promoted from what I've seen), there's plenty of scenarios that could end the party.

 

True.
I've heard banks calling in loans for props that have severe value decreases, but yet to hear of one case where they've called in one without a value decrease.

Does it happen?