Broker questioned the bank's refusal to match the overnight rate

Broker questioned the bank's refusal to match the overnight rate

Broker questioned the bank's refusal to match the overnight rate

 

"Over the years it has always been if the Bank of Canada rate drops by a quarter point, you will see the initial drop in a quarter point, but I think it really caught everyone by surprise that they really dropped because there's talk of last year that the rate will excellent ride and will increase, "The Roberts Group told Al Roberts of Dominion Lending Centres MortgageBrokerNews.ca.
One of the major banks have offered an explanation why interest rates are not in accordance with the Bank of Canada overnight rate, but the broker is not really for sale.
According to one analyst, the decision not to match the level of overnight done to ensure a healthy economy.
"The absence of full cut slow initial stimulus to the housing market at the end of the cycle, while the negative impact on the profitability of Canadian banks were blunted by the fact that it was only a partial step," Robert Sedran, an analyst at CIBC World Markets said in a note to clients, according to the Financial Post . "We'll see if it holds the balance or if another cut in the overnight rate to come."

Delay - and refusal to match the benchmark interest rate - is seen by some as an attempt to maintain the highest profit.
Bank of Canada lowers overnight rate by 25 basis points last week and all the banks lowered their prime rate by 15 basis points. It took almost a week after the bank's central bank lowered overnight interest rates to cut the main rate their own.
"On the one hand they were milking (client) on the other hand they have never seen this situation before; they were caught by surprise by the bank to lower interest rates and they refused to match it could be a case of banks pushed back a bit," said Michael Kafenzakis of Verico Groupe Conseil Hypotheque MortgageBrokerNews.ca. "In my forty years of experience, usually when the government drops their level of banks to follow. I guess in the next few months, they will come and bring their level down (to match the Bank of Canada rate). If not they just gouging."
However, the thought that smooth push-back by banks that are caught by the central bank unexpectedly cut interest rates - a move that captures many, including most economists Canada, off guard.

Broker diversification by providing consumer credit

Broker diversification by providing consumer credit

Broker diversification by providing consumer credit

"You can take the high road and say that people have too many credit cards and consumer debt is too much or you can take the 'if you can not beat them join them' approach," said James Robinson of the Center Mortgage MortgageBrokerNews.ca . "We're not here to be the moral police; if people are going to have a credit card and using it certainly would not hurt for us to give the same advice to our customers as we do on a mortgage in terms of choosing what is best.
It may seem ironic to some, but many brokers believe offer consumer credit card products is one of the most effective alternative revenue streams players can add to their business.
Brokers often criticized the government's focus on curbing mortgage debt as opposed to credit debt. This past December, the Bank of Canada stated that consumer debt is one of the biggest burden on the economy of Canada and announced that Canada currently carry a total of $ 1.5 trillion of debt.
"We find ourselves constantly counseling clients on how to manage their credit so I think it is a natural extension."
However, 22 percent of respondents in a recent survey said they MortgageBrokerNews.ca has diversified by offering credit consumer loans, and 43 percent say they are the best suited for mortgage brokers looking to diversify.

Other options include syndicated mortgages, insurance, and financial advice.

Others have diversified away from for fear of becoming "a jack of all trades and master of none".
Robinson, himself, has not diversified its business to include alternate revenue stream, although he has admitted to examine possible areas to expand into.
"My problem with diversification is that you are not a specialist anymore," said Mike Maguire Mortgage Wise Financial MortgageBrokerNews.ca. "Diversification into other areas do not make sense; I used to sell mutual funds and mortgage but it's hard to keep up-to-date on more than one industry."
"Consumer credit products related to mortgage - debt is a debt and I thought it was just an easy sell," said Maguire.
Maguire, however, see the benefits that it offers consumer credit products.

Mortgage broker promised loan but bagging costs, AG Cooper said

Mortgage broker promised loan but bagging costs, AG Cooper said

Mortgage broker promised loan but bagging costs, AG Cooper said

"Homeowners are trying to get a better interest rate should not get ripped off," said Cooper. "Take the money upfront and then fail to do the work that is against the law, so we have to take action."
Raleigh: A mortgage broker Zebulon who took thousands of dollars in upfront costs but failed to refinance home loans as promised to be permanently banned from the mortgage business, Attorney General Roy Cooper said in a lawsuit filed Wednesday.
Cooper filed a complaint yesterday in Wake County Superior Court against the Carolina Mortgage Group and president and principal owner Jeffrey D. Cox for violating state laws against business practices are unfair. Previous mortgage broker has offices in Zebulon and Wilson. Attorney General asked the court to permanently prohibit the defendants from the mortgage business in North Carolina, and ordered them to pay refunds to consumers and civil penalties.
A total of five consumers have filed complaints against Cox and Carolina Mortgage Group with the Attorney General's Consumer Protection Division. In addition, the NC Office of the Commissioner of Banks' received 15 complaints about the defendants between July 1, 2013 and 30 April 2014
As alleged in the complaint, Cox told consumers that can help them refinance loans on their homes and other property to the low interest rate on new loans and close within 30 days. He asks consumers to pay an origination or keyword cost of approximately one percent of the total amount of their mortgage and also ask them to pay for the appraisal. But once consumers pay a fee, Cox failed to close on a refinance, claiming various reasons for the delay. When refinancing never happened and consumers want their money back, Cox refused.
Commissioner Cox Bank revoked license as operator of mortgage loans and mortgage brokers license Carolina Mortgage Group on August 15, 2014. The defendant was ordered to pay $ 90,345 in fines and $ 36,345 in consumer refunds. Cox also faces criminal charges in Wake County for obtaining property by false pretenses and fraudulent residential mortgage.


Affidavits from three consumer victims filed along with the lawsuit:
• A Raleigh man paid $ 6,870 to finance the four properties owned along with $ 3,000 in appraisal costs. He waited almost a year and never got a loan financed.
• Some Wake Forest paid $ 10,485 to finance their homes and investment properties. The process lasts for several months without the defendant successfully completed one of the loan. The pair missed at a better interest rate through their banks due to delays and ultimately financed to 75 percent higher than they could.
• A Raleigh woman trying to refinance his home through Carolina Mortgage Group. Cox rescheduled five times the loan closes. After knowing that Cox is no longer licensed as a loan broker, he finally completed the refinancing through another broker.

Mortgage brokers face trial for alleged Myra Financial Services $ 110 million fraud

Mortgage brokers face trial for alleged Myra Financial Services $ 110 million fraud

Mortgage brokers face trial for alleged Myra Financial Services $ 110 million fraud

   ASIC alleges they submit bank statements, pay slips, certificate of citizenship and legal declarations on behalf of clients of the now-defunct company Footscray suburb Myra Financial Services, where they work, for loan applications between 2008 and 2011.
Manija Zayee not enter a plea on charges related to the alleged $ 110 million fraud home loan.
Woman indicted on suspicion of involvement in one of Australia's biggest home loan fraud face trial in Melbourne yesterday.
Zayee charged after a lengthy investigation by the Australian Securities and Investments Commission in the activities of mortgage brokers partner Najam Aizaz Hassan Shah and colleagues.
Fraud allegedly involved using false documents to apply for at least 350 credits with various creditors, including the Commonwealth Bank, Westpac, ANZ, National Australia Bank and others.

The company is registered in the name of the Zayee.
Shah was previously registered mortgage brokers and MFAA but Hassan only act as introducer.
Zayee been accused of obtaining financial advantage by deception by submitting false documents to secure a $ 136,000 loan from the Bank of Queensland.
Siobhan Hayden, chief executive of the Mortgage & Finance Association of Australia, said the MFAA SmartCompany realized fraud when Shah and Hassan was arrested.
"It seems that the fraud had been made about validating the credentials of deposits and work," said Hayden.
Hayden said of his discussions with the creditors involved he understands not a single loan with only a few errors in the little delinquent.
"I want as many people to understand how it was done, they've obviously used quite sophisticated system. I have to assume here that consumers are aware of what is being structured for them so that they can secure the loan."


"$ 110 million has not been lost, had been fraudulently obtained but banks are still processing it," he said.
"You can not reduce when one chooses to be a fraud," he said.
Hayden said MFAA not have to cancel the registration of the Shah because it's over two months prior to the exposure of fraudulent charges.
Hayden said people should still have confidence in the integrity of the mortgage broker.
"If every consumer never felt uncomfortable about the services provided by them should contact MFAA to raise attention."
"Almost 52% of the loan to the lender introduced today by brokers, so that consumer confidence in the broker is still high," he said.
ASIC has come under fire for investigation on suspicion of fraud after it was revealed Hassan able to loan write up his accreditation terminated on January 6, 2015.



Hassan appeared before the judge guarantee on January 2, 2015.
The spokesman said ASIC is not a rule of capture the flag would come to the employer or other related parties.
A spokesman for ASIC defend the role of the regulator noted that the investigation Myra Financial Services has been done for several years.
"It would be a lengthy operation, complex and sometimes very sensitive," the spokesman said.
"To do so would increase the risk of interesting people who provide information, even if it was on purpose," the spokesman said.
"There are some important part of the investigation that we can not express."
"It's potentially going to put employers in a compromised position For example, an employer may want to suddenly treat employees differently - perhaps even sack them .."
A congregation committed to Zayee been set for April 17, the same date and Hassan Shah will next appear in court.

Average "Suspect" Size Mortgage Soars

Average "Suspect" Size Mortgage Soars

Average "Suspect" Size Mortgage Soars

"In 2013 alone, refusing to insure the mortgage twice a week on suspicion of fraud; the average mortgage is $ 360,000."
Stat fraudHere an interesting definition of the Globe and Mail story recently:
Oakville, ON-based First Canadian Title (FCT), a leading title insurance company, saw roughly the same number of suspicious mortgage transactions in 2014, but with one big difference.
"The possibility of rising house price factor and fraudster feel confident that their mortgage application will be seen as 'average' in the market, and hopefully fly under cover," said spokeswoman Wendy Rinella FCT. "We know they did their research."
FCT record high for the average size of suspicious mortgage is actually higher in 2010 ($ 618,794), but, "The trend is that they dropped in recent years from 2011 to 2014," said Rinella.
The average mortgage size involved in shady deals skyrocketed from $ 360,000 in 2013 to $ 560,000 last year. Changes it seems almost too big and too fast to believe, but that's what FCT statistics show.

Men charged over alleged $ 110m loan conspiracy home in Melbourne

Men charged over alleged $ 110m loan conspiracy home in Melbourne

Men charged over alleged $ 110m loan conspiracy home in Melbourne

The regulator said that at least 350 home loans worth about $ 110 million was submitted and approved on behalf of the client Myra during the period of the alleged conspiracy.
ASIC alleges that the false documents including pay slips, bank statements, certificate of citizenship and legal declaration.
Mr. Najam and Mr. Hassan ran Myra Home Loans Pty Ltd (trading as Myra Financial Services) in Footscray in Melbourne during the period of the alleged fraud.
ASIC alleges that more than 300 loan applications containing false documents submitted to financial institutions, including the four major banks, their subsidiaries, major regional banks and other institutions.
Mr. Shah and Mr. Hassan was given bail on condition report to the police twice a week, to surrender their passports and did not attend the international departure points.
Partners and former director Myra Mr Shah Manija Zayee also charged with financial gain by fraud in connection with the alleged use of forged documents to support the home loan application on its own in September 2009.
Both men will appear in the Melbourne Magistrates Court on April 17.
He is scheduled to appear in court on 27 January.

consumer alert

Mortgage Broker South Wales New Moustafa Dandachli of Georges Hall pleaded guilty in 2013-10 accusations provide false loan applications to lenders for loans worth nearly $ 3.8 million for six months, and was sentenced to two-year good behavior bond and permanent prohibition of activities credit.
A number of other mortgage brokers have received a ban for the same error.
Consumer Action Law Centre Gerard Brody said his organization had seen the number of clients coming through the doors that have been affected by mortgage fraud.
"We heard from a dodgy brokers who say things like, 'We'll get your loan approved when other brokers will not'," he told ABC's PM program.

This is not the first case of ASIC has been run over alleged mortgage fraud, though is the largest so far.
"The Bank has a standard approval criteria and if it meets the criteria of consumer loans to go through, but if additional work must be done to the application to get it through then that might be questionable."
"One problem if the consumer does not receive any loan scams is that they may not be able to pay the loan in the first place and that probably means they have trouble paying back the loan and, if they are in that situation, significant arrears, the bank, under terms of the contract and credit protection, can take steps to call the loan and even sell to property in a situation like that, "he warned.
"The bank could also consider whether the consumer is involved in fraud and refer the matter to the police."
He said that the borrower does not have to face the consequences if they actually know anything about the false information in an application submitted by a broker, but they must check the accuracy of the documents they signed.

Link massive fraud mortgage brokers to main

Link massive fraud mortgage brokers to main

Link massive fraud mortgage brokers to main

Aizaz Hassan, from Truganina, and Najam Shah, from Glen Waverley, has been charged with conspiracy to defraud the four largest banks in Australia and half a dozen other creditors as part of a three-and-a-half-year scheme.
The Melbourne man in alleged $ 110 million mortgage fraud holds a senior position in one of the country's largest mortgage broker network, raising concerns that the true scale of the potential financial loss is unknown.
The Australian Securities and Investments Commission issued a statement on Tuesday outlining the allegations and claimed the scheme involving at least 350 dodgy loans made on behalf of customers.
It is alleged scheme involved massive falsification of documents between 2008 and 2011. The company regulators move to close the company in 2011.
The scheme allegedly made from the loan office Myra Financial Services in Footscray in the west of Melbourne.
Steps which came a few days after he was charged in the Melbourne Magistrates Court '.
Fairfax Media understands a large number of lenders and mortgage brokerage firms scramble to assess the extent of potential damage, after being told Mr. Hassan continued to write loans to its accreditation suspended on Tuesday.
Last year, five people were charged with hundreds of allegations of fraud and fraud for their involvement in a $ 100 million loan scheme alleged. In that incident, allegedly ignoring CBA
evidence repeatedly involve staff in the scheme, and instead seize the victim's home in an attempt to recoup losses.
It is the latest in a series of major incidents, the high-profile targets large lender with a broker or accountant who rely on false documents carried out on behalf of customers.
According to documents with regulators company, Mr. Hassan has held credit license through a number of different lenders since 2011, including RAM, Premium Financial Services and, today, the Australian Finance Group.
A spokesman for AFG said Hassan, 34, has been suspended considering criminal charges and a comprehensive internal investigation is underway into his work.

Fairfax Media can also reveal that the second person in the alleged fraud ring, Najam Shah, declared bankruptcy last month. Financial records show a man with the same name and date of birth also spent four years as a bankrupt between 2003 and 2007 and was known by the alias Najam Zaidi.
His position was as finance and operations manager at Cigna Finance - part of a network of AFG - according to the company's website Cigna it.
ASIC alleges both architects of the complex scheme used Faked documents to take out a home loan from the Commonwealth Bank, ANZ, NAB, Westpac and a number of other creditors.
If convicted they face a maximum penalty of 15 years in prison
"During the period in which he alleged a conspiracy going on at least 350 credits worth about $ 110 million proposed and approved on behalf of the client Myra," ASIC said in a media statement.
Loan applications were allegedly channeled through Myra Financial Services, which has been registered by the partner of Mr. Shah, Manija Zayee.
Property search shows the couple lived in a $ 775,000 home in Glen Waverley purchased immediately after the alleged fraud begins. It was sold for $ 921,800 after the company closed in 2012.
Ms Zayee, 39, has been charged with financial gain with fraud for allegedly using fake documents to receive approval for a home loan.