Reval fraud ...

Like I said, there's plenty of ways for this to go bad.

If they're committing valuation fraud what other fraud are they willing to commit? Where is the line between the originator and bInvested (the banker left Westpac years ago to start bInvested's finance arm)? What if the borrower defaults on one loan because they lost their job?

A house of cards, there's plenty of ways this could go badly.

 

Many years ago now, I went to one of his presentations, out of curiosity. From what I saw, the bank's employee knew exactly what he was doing. It was scary stuff. Although in saying that, I was a bit jealous on some of the vals, as I would have liked to be able to redraw a bit more & go, go, go, but the conservative side of me would have never let me. They spoke about a lot of 2770 homes, which I was right on top of, so I knew the vals were dodgy.

 

Don't know what was the motivation of the person who made the complaint or the truthness of the figure, but in a position of debt larger than asset is terrible.

 

This is an old complaint taken from this post:

B Invested - need urgent advice regarding Nathan Birch and Daniel Young - binvested.com.au

Some interesting comments in that thread.

 

I still failed to understand how a bank employee has the power to alter a valuation?

As far as I know all valuations are done by external and there is a good reason why.

If this guy really go back to sue the bank the bank will simply pass the blame onto the valuation company.

 

With that particular bank they don't alter a valuation, but the managers how the power to ascribe a value to a property without using a valuer.

Not sure if this is still possible but it had been going on with that bank for more than 5 years.

 

i may be talking out of my backside,

but around this time when I was trying to choose lenders, my broker and I were looking at some lenders that would do desktop valuations, most were fairly accurate, but the odd one was really high, maybe not this situation high,

I had a few props that inside were destroyed get valued at a price same as a house with a normal inside,

I also remember that some areas, all the houses were deskptop vals at the same price,

maybe it was a similar situation like this, but with the connections that Binvested had, maybe they were pushed even higher by that manager, so all props were pushed up and even a burnt out house was getting higher val prices???

or am I totally off mark?

 

Well obviously a burnt out house is an extreme example, I don't recall the property market being flooded by burnt properties. But let's say run down or unrenovated getting valued at renovated.
Even for full Vals, I had a few surprising Vals as I knew of most sales, and some were much higher as their comparative props were an outlier almost

Howver for such a huge discrepancy in this situation, something must have been going on

 

The point is is it a genuine Val of 150k?

Ie if they sold it tomorow, they could get in that price range?

If so that's well purchased
If not.. Uh oh