The reason it is over is because the banks are tightening their lending practices. So Gail would know, if anyone would.
The reason it is over is because the banks are tightening their lending practices. So Gail would know, if anyone would.
Denise Brailey of the Banking and Finance Consumers Support Assn, has, with The Australian, been closely following loan application irregularities for several years.
'But these emails prove unconscionable and predatory lending practices were happening across the board,' Ms Brailey said.
She instructed borrowers to contact their lenders and request copies of their loan application forms. 'In every single case they have come back astounded,' Ms Brailey said.
'Their incomes are vastly inflated and in most cases there are two, even three different sets of handwriting on the forms'.
Other major concerns which also point directly to imprudent lending was the writing of 30 year loans to people in their 70s and 80s.
In May 2008 as the GFC unfolded, Capital First wrote to one broker that "the maximum borrower age is now 70 years."
In the emails lenders spruik to brokers the availability of 'unregulated' loans.
That means loan application forms were ticked for 'investment or business purposes' and so were not covered by national credit laws.
Not before time, going by the story in "The Australian" over recent days.
Contrary to popular belief (my own included) Australia apparently had a thriving subprime event leading up to the GFC.
Talking to my old Real Estate confidant yesterday and we all agree that for a few years here it is going to be very ugly indeed. Anyone with any sort of a mortgage needs to get out now. If you own your own home however hang onto it as most other things apart from a bit of gold and silver will soon have little value. But your own roof over your head will be everything.
Just an uninformed, innocent and humble two cents.
You still haven't really given any reasonings explod? Do you think it is a sub-prime cirsis coming? Or somehting else? Global or Aus specific? etc etc
To think I ended up listening to the smooth words of “seal” when I should have listened to the knockers who’d never end up owning a thing....
That's a bit unnecessarily dramatic, isn't it? Plenty of people have perfectly manageable mortgages and are very happy living in the houses they have chosen.Anyone with any sort of a mortgage needs to get out now.
That's a bit unnecessarily dramatic, isn't it? Plenty of people have perfectly manageable mortgages and are very happy living in the houses they have chosen.
Not that it would ever happen, but perhaps consider the results if everyone with mortgages were to suddenly put their properties on the market.
Totally unrealistic. Silly, really.
If bond holders lose confidence in one of the major economies, that could get interesting.The speed of change is gaining pace, we have had Ireland, Iceland, Greece and now Spain. Some are saying that a domino effect will occur at the collapse of Spain and indications are that this is close. Their Bond Yields almost hit 7% today.
If bond holders lose confidence in one of the major economies, that could get interesting.
where did all the bulls go......? alot of them will be doing thisshortly i feel.
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