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Mortgage fraud rampant among broker clients

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Australian Broker | 10 Oct 2016, 07:00 AM Agree 0
A new study has unveiled some disturbing trends for mortgage holders especially amongst those using brokers
  • Steve Morrison | 10 Oct 2016, 09:49 AM Agree 1
    I really get quite frustrated by reports like these...Did UBS commission this on their own or were they commissioned by someone? What is their motivation for this report?...Be nice if they specified what type of client was been interviewed because I don't know how you can misrepresent income when we as brokers (good ones) are compelled to verify income via payslips and PAYG Summaries or tax returns...now if they are fraudulently created then that is another matter and deserves to be dealt by the law. Then the topic of liabilities ie personal loans, credit cards...as a broker we request statements for all liabilities...should the client not fully state their position they will eventually be found out as banks carry out credit checks so any undeclared liabilities will certainly come to light and require an explanation. There are checks and balances in place. I know some brokers even carry out their own credit checks with the clients permission of course to make sure that there are no little hidden surprises that could affect the success of an application.
    Finally it would be nice if when reports like this are published that they clearly state their motivations and give a balanced view, not one that supports a particular view point
  • Cubeman | 10 Oct 2016, 10:14 AM Agree 1
    It's a common misconception IMO that we as brokers can increase income - even if we can / could / do, the credit team will pick it up by annual using income by YTD and for us, we have to have 3 months bank statements which cross reference to the clients pay for our ACL.
    So, yes, the client may have said that their home was worth more or included an increased income figure - but it still has to go through us as the broker and then the relevant credit team for approval so I think it would be fair to add that these anomolies had little or no impact on the overall credit acceptance of the application
  • Vested Interest Broker | 10 Oct 2016, 12:05 PM Agree 0
    A new study published by a company with a vested interest in funds management which probably means a dislike for the property/mortgage industry. Any professional survey writer can ask questions that will give responses favoring their agenda. Please post articles that don't waste my time. With our industry under review, why are you throwing dirt on brokers with this sort of wishy washy nonsense? I'm happy to receive your email every second day if there's no real news today.
  • | 10 Oct 2016, 12:24 PM Agree 0
    Notwithstanding that there are many parts of this report by UBS that I disagree with including their figures (of which I hold a copy of and have read the full report), the headline of this article is sensationalising things that aren't the case. There is nothing in these figures to suggest fraud is “rampant” among broker clients.

    Furthermore, the second paragraph states “41% of those who secured a mortgage through a broker said their broker encouraged them to misstate information in the application” which implies that this percentage is of all mortgages surveyed, this is not the case as the figures according to the survey (which again I dispute) is that just over 6% of all those surveyed said a broker encouraged them to misstate information, but there are no concrete facts to support this.

    It is important that we report the facts in a balanced manner rather than attempts to damage the industry’s reputation through sensationalism or a lack of full understand of the data or data that as reported by its author has issues of accuracy.
    • Peter White FBAA | 10 Oct 2016, 12:37 PM Agree 0
      Not sure why this comment didnt display my name - but is from Peter White FBAA
  • Wrong Conclusion | 10 Oct 2016, 01:25 PM Agree 0
    I see the last paragraph as jumping to the wrong conclusion - if brokers are encouraging applicants to increase their stated incomes and decrease their stated commitments then obviously they can provide the applicant with a higher borrowing capacity that that offered by the banks and thus a better conversion rate - not rocket science just confirming the reason why more brokers encouraged their clients to lie!
  • UBS (Utter BS) | 10 Oct 2016, 04:30 PM Agree 0
    Seriously !
    Here's some light reading on UBS ubs.pissedconsumer.com
  • marty | 17 Oct 2016, 09:49 AM Agree 0
    same mob who were shorting the banks.
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