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Landlord finds dope operation, gets arrested for mortgage fraud

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Australian Broker | 08 Nov 2013, 08:00 AM Agree 0
A Melbourne landlord who called police after finding a marijuana operation in his tenanted property instead found himself under arrest for fraudulently obtaining a mortgage
  • Dave Robinson | 08 Nov 2013, 09:01 AM Agree 0
    No doubt ASIC will be investigating the loans officer at Westpac and the press release advising of their banning for 4 years will be issued in due course.
  • Country Broker | 08 Nov 2013, 09:25 AM Agree 0
    Ok So what did the loans officer at Westpac know , did they do multiple loans for the conveyancer? didi Westpac seek to confirm the pay slips as we are to do . Will ASIC investigate The lender? Probably not .
    It just shows how careful brokers need to be because if a broker was innocently caught up in this ASIC would be all over them .
  • Mark Davis | 08 Nov 2013, 09:31 AM Agree 0
    Any Brokers/Bankers privie to such information around false documents needs to be taken ot of the industry immediately. Its time such behaviour is elminated completely from our great industry.
  • Old Fashioned | 08 Nov 2013, 10:06 AM Agree 0
    Call me old fashioned, but back in the day all the lenders will call and clarify the employment status of the applicant. Why is it always the (innocent) brokers fault when something goes wrong? I only use lenders that call and verify employment. This way there is some level of responsibility back to the lender. Not worth being banned just because of one dodgy applicant who purposely falsifies documents and you lose your reputation you have built for the last 15 years.
  • Tim H | 08 Nov 2013, 11:27 AM Agree 0
    In reading recent comments I get the impression the broking community are frustrated with the role ASIC is now playing in our industry. Prior to NCCP broking was not much different to now but there were more cowboys and fraudsters getting away with dodgy lending practices with little regard for anyone else. NCCP got rid of a lot of these people out of the industry and ASIC is now rightly prosecuting fraudulent or dishonest operators who are not abiding by the NCCP guidelines.
    However ASIC are now taking on the Big Brother role of telling industry players to not do this or that or risk prosecution. It appears each and every week another release is put out by ASIC about something.
    What I and many other brokers would like to see from ASIC is less grand standing and more prosecution of the law breakers where necessary.
    The vast majority of the broking community are smart and honest operators who do not need their hands held by ASIC. Let's keep it that way.
  • WP | 08 Nov 2013, 11:31 AM Agree 0
    How did the police find this out, if they were there to investigate a haul of Pot?

    Surly it would be unusual for the police to look into the loan application when called to a premiss to investigate this sort of crime.

    I think there is more to this.
  • Broker | 08 Nov 2013, 11:42 AM Agree 0
    Spot on Tim, ASIC's day to day involvement is becoming a joke, seems to be case after case of "shameless self promotion" and little else.
  • Goodo | 08 Nov 2013, 12:28 PM Agree 0
    WP is spot on with his comments. How did the borrower service the loan if he couldn't show the income? Sound to me as if the pot was his and he was about to get caught so claimed it to be a "Rental". Police would NOT investigate the landlord's financial situation unless there was suspicion of criminal activities.

    In regards to ASIC's treatment of Westpac, surely a slap on the wrist would be over the top. Can't upset them too much given they are bigger then you and would bite back!!
  • Funny Friday | 08 Nov 2013, 01:01 PM Agree 0
    sounds like a pub story- a refugee comes to Australia, aqcuires a home so that someone else can grow weed and then gets arrested. Is charged with fraud and his lawyer says he was tying to get ahead in life. Come to think of it this is Tony Montana in Scarface, Aussie style!!!
  • L3nder | 08 Nov 2013, 02:19 PM Agree 0
    Update: ASIC are investigating the Westpac loan and believe they may take action for approving the loan without proper verification of income if they can link it back to a broker.
    "We want the industry to know that slap dash lending will not be tollerated and ASIC will take action against anyone that cannot fight back."
    A spokesman for Westpac agrees.
  • Denise Brailey BFCSA (Inc) | 08 Nov 2013, 04:29 PM Agree 0
    Why isn't the Lender walloped for approving an unaffordable loan? Why would a refugee, unsure of authority, report the weed if he believed he has done something wrong? Sounds like a Bank "fit up" to me. Refugee was easy pickings I agree with you Dave!
  • TS | 13 Nov 2013, 09:59 AM Agree 0
    Sometimes it looks like the NCCP was only created to punish brokers and not banks. If a broker was part of this loan he would have lost his business. Double standards in our industry.
  • Denise Brailey BFCSA (Inc) | 13 Nov 2013, 11:43 AM Agree 0
    I
    Loans Officers were tweaking the Loan Applications according to our extensive investigations. Their service calculator was geared different to the one brokers were given access to by lenders. Turn the heat up. The refugee ought to be reporting the credit assessor to Police and lodging a complaint
  • Regional Broker | 14 Nov 2013, 10:13 PM Agree 0
    Even when I was working in "Retail Bank Land" I still contacted the employer for employment verification, I still practise this in "broker world".
    Someone once said, if u don't cover your own butt, no one else will, they will just have a piece of it.!
    I have had incidences where "retail world" have not used correct income, and clients have been put into a hardship case.....one case that comes to mind is ST George.....hence the reason I avoid them if I can.
  • MelbBroker | 15 Nov 2013, 12:17 PM Agree 0
    If that comment about ASIC investigating if a broker was involved is true, then it's a disgrace. What if they weren't involved? Does the bank get off scot free (again)??
  • Denise Brailey BFCSA (Inc) | 15 Nov 2013, 02:42 PM Agree 0
    ASIC is not investigating Lenders.....it has placed the ONUS of ascertaining affordability on the Broker. ASIC will therefore look at the Broker in all instances where an investigation takes place. Ask your clients to ask the bank for the lender copy of the faxed Loan App. You may find a surprise.
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