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Australian Banks Sitting on A$500 Billion of 'Liar Loans', UBS Says
11-09-2017, 12:51 PM,
Post: #1
Australian Banks Sitting on A$500 Billion of 'Liar Loans', UBS Says
Australian Banks Sitting on A$500 Billion of 'Liar Loans', UBS Says

By Emily Cadman
September 11, 2017, 10:33 AM GMT+8

Here’s something else for policy makers to worry about as they attempt to engineer a soft landing in Australia’s property market.

The country’s lenders could be sitting on A$500 billion ($402 billion) of “liar loans,” or mortgages obtained on inaccurate financial information, according to an estimate from UBS Group AG.

A survey by the firm of 907 Australians who took out a mortgage in the last 12 months found only 67 percent stated their application was “completely factual and accurate,” down from 72 percent the previous year. The most common inaccuracies were overstating income and understating living expenses, the survey found.

More details in https://www.bloomberg.com/news/articles/...s-ubs-says
Specuvestor: Asset - Business - Structure.

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11-09-2017, 07:17 PM,
Post: #2
RE: Australian Banks Sitting on A$500 Billion of 'Liar Loans', UBS Says
Jonathan Mott Wrote:suggest mortgagors are more stretched than the banks believe, implying losses in a downturn could be larger than the banks anticipate,

Australia's already feels like it's in a downturn with the rising cost of living and stagnant wages... 

Thought it'd be good to share a zoomed out filtered search on http://www.realestate.com.au for "mortgagee" as a keyword to locate properties in possession... Good indicator of the state of affairs in each city. 

[Image: 6GpeyoH.png]

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12-09-2017, 01:37 PM,
Post: #3
RE: Australian Banks Sitting on A$500 Billion of 'Liar Loans', UBS Says
I think I saw this movie before....

NINJA (no income no jobs) loans, mexican farm workers getting 120% loans to buy houses, mortgage brokers under pressure to meet sales targets, banks package loans to sell to investors so dont really care, people taking out home equity loan to consume....as long as house prices continue to climb, the party went on...until 2007....

The Big Short...https://www.youtube.com/watch?v=vgqG3ITMv1Q
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster

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14-09-2017, 11:33 AM,
Post: #4
RE: Australian Banks Sitting on A$500 Billion of 'Liar Loans', UBS Says
Lol as I have been saying for a few years now, big bubble there just like in China, pop or not, hard or soft landing that is the question.
"I love Taiwan"

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14-09-2017, 02:17 PM, (This post was last modified: 14-09-2017, 02:17 PM by ksir.)
Post: #5
Australian Banks Sitting on A$500 Billion of 'Liar Loans', UBS Says
(14-09-2017, 11:33 AM)BlueKelah Wrote: Lol as I have been saying for a few years now, big bubble there just like in China, pop or not, hard or soft landing that is the question.


OTOH, to me the keyword is "few years"!
If i keep buying toto for few years, wouldn't I strike at least once?!

Just saying. Lolx
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".

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14-09-2017, 02:33 PM,
Post: #6
RE: Australian Banks Sitting on A$500 Billion of 'Liar Loans', UBS Says
In my personal opinion, never underestimate a government will to sustain the bubble. China is a good example of how the debt bubble can defy economic logic with empty shipyards, idling textile factories and ghost towns

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