Australian Bad Bank Practices Exposed

Australian Mortgage Lending and by association Aussie housing market could be in a bit of trouble.

Banking Royal Commission may have only been going on for a few weeks, but so far Commissioner Kenneth Hayne has heard tales of:

Fraud

Irresponsible/Lax Lending

Forging Signatures

Reckless overstatement of income on loan applications

Over 50% of loans are put together by brokers that earn more money for making the largest loans possible

According to bank documents 42% of people that took out mortgage loans were making more than 500,000 income per year! Australia has a fairly healthy economy relative to a lot of other places, but I don’t know of too many people that would be in that 42%! Guess I am hanging with the wrong crowd (lol).

Australians were able to escape most of the negative consequences of the previous global financial crisis of 2008, however, if precautions were not put not place, and their banks were not closely regulated then a few ghosts from the last crash might still be lurking around.