Projects

generally do which ispretty scary so well it is because ifinterest rates go up they don’t makethose allowances sir how far do youthink interest rates would have to movebefore we see real problems wouldn’t bemuch i I’d say one percent wouldprobably hurt a lot of people yeahand consumer activists say banks andbrokers have also been signing people upfor mortgages they can never affordwithout their knowledge there’s a lot ofevidence that we’ve come across thatbanks are actually fudging the lightapplication forms of a borrower’s tomake them look a lot more creditworthythan what they really areeconomist lindsay david has presentedmore than , examples of altered loanforms to the parliament he says it showsthat banks are engaged in predatory evenfraudulent lending the banks areactually using literally using liquidpaper or other types of ways to clearout the the income of a the income ofthe loaner applicant and and raisestheir lending to homebuyers that have noability to be able to pay off their loanand they’re basically depending on theproperty market to continue to rise at aconsistent rate and we didn’t have to gotoo far to find someone who’d had theirloan application changed by a bank andthat’s all from the business I’m EliseMorgan thanks for watching when ABCbusiness reporter Elise Morgan got