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Spike in broker fraud claims on the horizon

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Miklos Bolza | 02 Mar 2017, 08:25 AM Agree 0
An increase in the number of complaints against third party originated mortgages is expected to occur in the future
  • Clarke Kent | 02 Mar 2017, 09:08 AM Agree 0
    Another irresponsible article - please no documentary evidence to support such claims all made on maybe's & what if's - disgraceful & irresponsible
  • Roland Germano | 02 Mar 2017, 09:25 AM Agree 0
    Agree with Clarke

    Banks also complete a serviceability assessment using a much higher rate that the SVR which covers rate increases

    Do these people know what they are talking about or just like to see their name in lights

    They need to be corrected via the media
  • Matt Blakes | 02 Mar 2017, 09:27 AM Agree 0
    Why would a broker encourage somebody to stretch themselves beyond their budget??? When I have know of cases where a broker can not get a deal to service, the consumer goes to the bank, and the lending manager encourages the consumer to put the loan as an investment loan. That way they can use the proposed rental income for the loan servicing which will increase their borrowing capacity and get them over the line!
    • | 07 Mar 2017, 11:19 AM Agree 0
      Not taking about brokers
  • Ozzie Bob | 02 Mar 2017, 09:36 AM Agree 0
    What evidence does the speaker have for stating that the loans ranged by brokers are fro "higher amounts". And then he expects us to make a connection that that means higher risk, without acknowledging that the people who seek/use a broker may be very different (who actually has studied this I wonder) from those who choose to go directly to a lender.

    Ill-informed - or misinformed - statements/assumptions are the bane of this industry. It's that sort of sensationalist reporting that got the draconian SACC/MACC amendments enacted, despite global evidence to the contrary from a USQ study, which in reality disadvantage those least able to borrow money legitimately elsewhere.

    Please - a bit more balanced reporting would be good. And the premise of the article seems to be that borrowers will look for someone to blame when the rate rises predicted start to bite. That's not the brokers' fault. Whatever happened to taking responsibility for one's own actions?
  • You can't be serious | 02 Mar 2017, 10:15 AM Agree 0
    Vague statements on something that MAY happen. FFS! Guess what the consumer can so NO at any time. Everything is fine until they get into trouble then it's time to blame someone anyone but NOT the consumer because heaven forbid that they should take ownership of something they did.
  • Kevin McCrohan | 02 Mar 2017, 10:27 AM Agree 0
    This a very irresponsible article to publish with no factual basis, and to target the broker group and not have any mention of the shoddy lending practices of quota meeting lending mangers at banks (lets address that!), is ludicrious.
  • Tim H | 02 Mar 2017, 11:56 AM Agree 0
    These sort of articles and statements just make me so mad. While we as brokers carry out due diligence and responsible lending checks using various lenders servicing qualifiers, confirmation of documents provided and as suggested by my aggregator yesterday employment checks we at the end of the day do not approve the loan.
    To imply that broker originated loans will present a higher level of future problems around credit defaults and borrower distress is just plain unfounded BS.
    There are bad eggs in all industries and in our industry on both sides of the fence being brokers and also lending organization staff. It is the job of all within the industry to weed these people out and get rid of them whether that is done by ASIC, aggregators, lenders or fellow brokers.
    Miklos Bolza if you are going to report these comments from these consumer advocate groups at least ask them what evidence they have to back this up, have they also looked at what effect poor lending by bank staff will have and whether in fact it was the client who was misleading both the broker and the bank.
  • Papery | 02 Mar 2017, 01:22 PM Agree 0
    Ambulance chasers.... bringing on litigation because they can
  • Chris | 03 Mar 2017, 10:32 AM Agree 0
    "Alexandra Kelly, principal solicitor at the Financial Rights Legal Centre of NSW" ..... indicates that this lady holds some sort of a legal qualification. To wrap up fraud by brokers and later problems caused by interest rate rises in the one sentence .... really, is she saying the brokers are responsible for rate rises too now ? Our legal system today, looks to blame others no matter what. It portrays the consumer as a brainless person only doing what they are told to do. Suppose this is what has made it the fastest growing industry in Australia over the last 100 years. When is common sense and actual responsibility by the primary party/s going to come back into the equation.
  • Kel | 03 Mar 2017, 10:55 AM Agree 0
    Why would you even give this story Legs "Systematic Fraud Sound like Organised Crime Amongst The Broker Channel" but I Quote The Learned Alexandra Kelly "she had not seen any evidence of a “systemic problem” with fraud in the broker channel at present, more consumer claims could emerge" are you guys for real why don't you get a quote from the Tooth Fairy too !
  • kel | 03 Mar 2017, 10:58 AM Agree 0
    Wow I just went to Post my first ever comment on your article in absolute amazement and disappointment at this article and get advised it has to get thru "your Moderators Censorship first" I agree with all other comment what an irresponsible absurd article from our own people
  • Mel | 07 Mar 2017, 04:08 PM Agree 0
    “They encourage people to get bigger properties and that stretches people if interest rates go up.” Really?? You've got to be kidding me! What a joke.
  • BankOfCommonSense | 17 May 2017, 09:29 PM Agree 0
    Worked for a few different brokers over the years. All will be sweating bullets.

    Perhaps broker assessment (not just bank serviceability) should take in to account a higher interstate rate for suitability for clients to make repayments.
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