Mortgage Insurance Through The Roof, And Other Nasty Signs

7 Jul

From the Sunday Telegraph:

PREMIUMS have gone through the roof for the supposed “insurance” that a quarter of all homebuyers have to pay when taking out a loan.

Lenders Mortgage Insurance for a borrower with a typical 10 per cent deposit on a $500,000 property has risen from less than $6000 last year to nearly $9000, a surge of close to 50 per cent according to brokers Home Loan Experts.

… LMI has been used in more than two million loans but is poorly understood and is rarely discussed in detail. It is charged whenever a borrower has a deposit of less than 20 per cent. Many of those who pay it don’t even realise it protects the bank, not them.

In August 2011, then Treasurer Wayne Swan announced the introduction of a one-page fact sheet on LMI. Nearly two years on it still isn’t in place. It is “close” to being in place, according to the office of Assistant Treasurer David Bradbury.

Incredibly, when it is, it won’t even nominate the cost. And it is unlikely to point out that LMI is neither portable nor refundable.

That means any household looking to refinance with another lender faces paying thousands of dollars in LMI for a second time, unless they have at least 20 per cent equity in their home.

Mortgage brokers and consumer groups say this is undermining the Government’s efforts to increase competition in the home-loan market because having to pay LMI again makes switching lenders financially unviable.

… Home Loan Experts’ LMI premium increase calculations were based on comparing 2012 and 2013 rates for Genworth, one of the two major providers of lenders mortgage insurance in Australia.

When contacted for comment, Genworth said all executives authorised to speak to the media were on holidays.

Premiums levied by the other big provider, QBE, have also increased considerably. A mortgage broker who asked not to be named for fear of retribution said there had been a 17 per cent increase since 2010…

QBE would not provide any information on its premium rates. However, a spokeswoman did say premium increases were due to elevated claim levels and higher reinsurance costs, as well as lower investment income.

Lenders Mortgage Insurance is a perfect example of how our society is totally ruled by bankers.

Consider for a moment just how completely unjust … how utterly f***ed up … “our” financial system is:

  1. Banks are (exclusively) allowed to create new “credit” — backed by nothing — simply by typing new numbers into their computer.
  2. Banks are allowed to make profits by charging usury (interest) on that new “credit”, when they sign you up to a loan contract — which you must repay, or risk losing everything you own (bank-rupt).
  3. You have to pay for insurance to protect the bank in the event that you can not continue repayments of their “credit” + usury.
  4. You have to pay for that insurance again, if you want to transfer your 30-year debt+usury repayment obligations to a different bank.

The “finance” game is completely rigged.

They can’t lose.

In related news, the real estate industry lobby parasites are now calling on the government to let first home buyers tap into their superannuation savings, in order to come up with enough money for a deposit:

Call to supersize home deposits

Concerned about declining home ownership levels and a sharp fall in the proportion of buyers purchasing their first property, the Real Estate Institute of Australia (REIA) wants first homebuyers to be able to tap into their superannuation savings to help them scrape together a deposit.

… The institute says recent interest rate cuts have had little impact on the desire of potential first homebuyers to enter the market.

Er … hello?! Maybe that’s because Australian house prices — the highest on the planet — are simply too expensive?

Maybe it’s because the younger, internet-savvy generations are discovering the truth about our world-leading housing Ponzi?

Or maybe it’s because they do not want to be in debt to the bankers usurers for the rest of their working lives?

The institute cites two schemes operating overseas – in Singapore and Canada – that allow first homebuyers to use their superannuation savings when they buy a property.

… The REIA has also called on state and territory government to reverse the trend to only offer first homebuyers grants for new dwellings. “It’s excluding 80-odd per cent of people who have historically bought established homes,” [REIA President Peter] Bushby says.

When it comes to keeping the flow of property buyers coming in at the bottom of the Great Australian Housing Ponzi scheme, supporting and driving up prices (and thus, their commissions from property sales), there really is nothing — no bald-faced lie, no cunning deceit, no twisting of the truth — that these filthy rotten morally vacuous scumbags won’t say.

Perhaps it would be best for the common good if these people — along with the bankers, whose scraps they feed off — were all rounded up, taken down the back paddock, and their 100% self-serving thought processes “rebalanced” the good old-fashioned way.

With a small high velocity lead weight implanted in the side of their heads.

If you are not keenly interested in understanding and sharing the truth about the evil, deceitful, parasitic way in which the bankers’ debt-at-usury “money” system works, then you — your apathy, your ignorance, your disinterest — are a vital part of the reason why this predatory, cancerous system continues.

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8 Responses to “Mortgage Insurance Through The Roof, And Other Nasty Signs”

  1. mick July 7, 2013 at 1:47 pm #

    Sounds like you are having a bad day Blissful. A bit over the top.

    Your observations about the financial industry is pretty spot on. First their were the Life Insurance salesmen. When this dried up the scum moved to Superannuation. Then to mobile mortgage lending. I imagine that self managed superannuation funds (a death trap for many) is the next goldmine. It never ends and it is always the same paradigm, THE MONEY TRAIL.

    If you think that taking these scumbags to the back paddock you forget that the next generation of scumbags is waiting in line. The real problem is that governments refuse to govern for the people and panders to business. The wash up of the GFC makes that clear with not one single prosecution for those who caused it and bailout money to the banks involved.

    I have to concede to your conspiracy theory a bit as ordinary people are sheep to be farmed …..and we all are. A few escape due to intellect and luck but most are put in their place and routinely raped because this is a permitted use for the rich.

    As for your continued rhetoric about ‘usury’ I am not too sure that you are 100% correct. There has to be a price on money otherwise the financial system would collapse. I might suggest that this is what is going to happen in the US in a few years time unless it sees the error of its ways (it won’t). Enjoy the ride. And if you agree with me buy gold soon.

    • The Blissful Ignoramus July 7, 2013 at 2:28 pm #

      “There has to be a price on money otherwise the financial system would collapse.”

      Exactly. Think about that. Carefully.

      You just confirmed the whole point of my (and many others’) argument.

      The bankers’ rigged, corrupt, parasitic financial system needs usury (ie, “a price on money credit”) to survive. That is what “a price on money” is — the interest rate is the “price” charged to borrow “money”.

      Banks make their core profits via the “Net Interest Margin” (NIM) — the difference between what they pay out in usury, and what they receive in usury. Without usury (ie, if it were again banned by law, as it was until Henry VIII, and the Medici banking family’s Pope Leo X, pre-“Enlightenment”), their system, designed and rigged for their benefit, collapses.

  2. gusgrunt July 7, 2013 at 2:27 pm #

    “Perhaps it would be best for the common good if these people — along with the bankers, whose scraps they feed off — were all rounded up, taken down the back paddock, and their 100% self-serving thought processes “rebalanced” the good old-fashioned way.”
    “With a small high velocity lead weight implanted in the side of their heads.”

    I hate waste… even small high velocity lead weights!
    Certainly worth a thought as these creatures over the centuries have stolen, raped, murdered and pilliaged without the slightest remorse.
    I would feel a little more comfortable, though, if their total combined assets were stripped and high quality picks and shovels, made to last for decades of slog, were attached to their manicured hands as the only way they can put bread on their tables….. then use the confiscated multi trillions to re-educate and re-construct a natural free enterprise economy without usury and governments that answer to the people…. pipe dream?…. but worth another thought… Gus

  3. arnoldthecat July 7, 2013 at 3:34 pm #

    Hi BI
    I appreciate your anger at the system, but it is the system we need to focus our anger towards. Not the people.
    The people are ignorant and have been led astray. Education about credit and usury is key. It is a hard road, however, and requires much patience and clarity of purpose.
    Your efforts in education to date IMO have been magnificent.
    At some point we will experience the hundredth monkey effect and the educated minority will be large enough to change the system.
    Until then we must stay the course and continue to strike at the root of the system by educating those who will listen while still cherishing those lost in the matrix.
    Your “used car salesman” is innocent even while he hurts us with his ignorance.
    Keep up the good fight.
    Cheers Phil

    • The Blissful Ignoramus July 7, 2013 at 4:09 pm #

      Points taken Phil, and agreed, vis-a-vis “the people” in general.

      But in the case of those heading up the F.I.R.E. ponzi spruiking lobby, however, while I accept the likelihood that someone like the REIA’s Bushby probably doesn’t actually understand how the system works at the root, at the same time, I find it extremely difficult to believe that he (and others like him; the turds that floated to the top of their “trades”) do not know that what they are spruiking to the public is lies, deceptions, and propaganda, and all motivated by the self-serving desire to keep their own substantial income streams flowing (and growing). I’ve little tolerance for these remora at “the top”, living well and very comfortably off the table scraps of the banksters’ feeding frenzies.

      • arnoldthecat July 7, 2013 at 8:49 pm #

        I don’t know Bushby. I have had some contact with David Airey the previous REIA president. I would be pretty confident that David has little concept that it is rate of credit expansion by private banks that is the driver of property price increases. Being frank neither did I until I had a WTFJH moment due to GFC.
        I don’t disagree that we can witness greed at any level of this industry particularly at the top. I believe this occurs separate to and ignorant of knowledge of credit/usury.
        I think those at the top of the fIRE industries are most likely the most indoctrinated. They almost need to be to get there.
        They will therefore be the hardest, maybe impossible to convince otherwise.

        Since I started seeking out blog writers with interesting ideas that challenge the status quo I have noticed two things:
        First is an expansion in the volume or participation of readers.
        The second is an evolution in the sophistication of discussion over time.
        I believe the groundswell is under way. 🙂

        All the best Phil

  4. Richo July 8, 2013 at 11:04 am #

    An excellent piece. You could also add the fact that the interest rates on credit cards have remained relatively stable (over 20%) for the past couple of years despite the fact there has been a massive drop in the cash rate. Fortunately, people are waking up to the fact they are being fleeced and switching to debit cards.

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