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Fraud a 'continuing' trend in broking: ASIC

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Australian Broker | 11 Feb 2013, 08:00 AM Agree 0
Fraudsters cost Australia a whopping $372.7 million last year alone - and ASIC says the issue is a serious one within the mortgage broking industry
  • Wishful Thinking | 11 Feb 2013, 09:03 AM Agree 0
    There is a lot more fraud in the finance industry then the MFAA is aware of. It is a fact that the funders do not make this information readily available, and prosecutions are limited due to the time and expense involved. Everyone needs to stop dancing around this issue and report all such matters to ASIC, who are the governing body, NOT the MFAA.
  • Mike C | 11 Feb 2013, 11:11 AM Agree 0
    " Finance, perhaps unsurprisingly, boasts the highest fraud rate of any industry in Australia, according to KPMG’s 2013 Survey of Fraud, Bribery and Corruption in Australia and New Zealand. The report found that the financial services industry accounted for 86% of all fraud in Australia and New Zealand in 2012. Twenty-five per cent of fraudsters came from outside the company they victimised."

    So do we then assume that 75% is 'internal' by nature? Having spent 34 years in this industry I can assure you that incidents of fraud are not just solely related to the 'brokers' . I would like to see the current incidents occurring from within the actual lending institutions. A strong sales & target focussed environment/culture could also lead to higher rates of fraud. Fraud or even 'loose' lending practices may not just be initially committed by officers of financial lending institutions for upfront personal monetary gain, it may be to simply ensure unrealistic targets are met?
  • Maria Rigoni | 11 Feb 2013, 12:22 PM Agree 0
    When the term "mortgage broker" is being used are the accusers referring to accredited loans writers or mortgage managers or both?
    Is this an agenda to justify getting rid of the third party channels?
    Who is making all these reports to ASIC? Do they have any experience in the application and approval process?
    How is the fraud costing Australia $327.7 million? Is that the cost of ASIC investigations?
    Due to market dominance of a few players in the mortgage industry there is an imbalance of power between lenders and responsible borrowers... affordable loans for the average borrower maybe getting to hard to get approved as the big boys only want "vanilla" clients on their books.
  • Terry | 11 Feb 2013, 03:42 PM Agree 0
    what about the branch land goons, not just brokers. I smell a cover up here.
  • Ralph Rintoule | 11 Feb 2013, 04:22 PM Agree 0
    When you have proof of a fraudulent case nobody & I mean none of the organisations & association want to do anything about it
  • Denise Brailey BFCSA (Inc) | 22 Mar 2014, 12:35 PM Agree 0
    Only 3 % of brokers are involved in fraud. Its the Lenders....of course it is, altering LAFs after they are presented for processing. Major Banks involved in the lion's share a whopping 85%. Tell your customers to ask for the Bank's copy of LA....wait for the shock! Its the lenders that developed the service calculator and ASIC is saying "yes but brokers only have that as a tool if they want to...its not compulsory to use it." On the witness stand ASIC Chief blamed the brokers to the Senators and never mentioned the Lenders....read the evidence 19th Feb. Brokers are being set up. I agree 97% of brokers are good honest people. I told the Senators that fact. Now Industry bods are saying "fraud awareness training" Start with the Bank's copy of the LAF and see evidence for yourself. More than 400 people have complained to Federal Parliament about ASIC about Lenders not Brokers. They have found the evidence. Gallons of white out being used inside the banks.
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