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Widespread fraud in banking system, says Senate submission

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Australian Broker | 26 Apr 2016, 05:06 AM Agree 0
A new submission to a Senate enquiry into white collar crime suggests Australia's banks are rife with fraud when it comes to lending.
  • Country Broker | 26 Apr 2016, 09:23 AM Agree 0
    This article is very hard to understand , as a broker , I have found a tightening in Credit appraisal standards, by all lenders . It may be the banks are looking at third party deals carefully and dropping the standards on their internally sourced deals , even that would be hard to understand.

    This submission written by consultants seems to be full of conjecture , hopefully the inquiry can see straight through this submission as self serving and just wrong
  • Camberwell Broker | 26 Apr 2016, 09:32 AM Agree 0
    "massage the numbers..... computer spits out an approval..." Do these "expert whistleblowers" not realise we have to verify everything and are audited annually on our files. I cannot speak for the direct lending staff in banks however every mortgage broker and support staff I know and have trained is fully aware to document and verify all data before actually completing the submission. It's all to do with my ethics and a little piece of legislation called the NCCP!
  • OzBoy | 26 Apr 2016, 09:45 AM Agree 0
    Who and who from where said what!? Not really sure how much attention (apart from some media) that this submission will get. While I have the utmost respect for Mr Morris not all lenders rely on a computer system to "spit out an approval". Funny how there is no actual details, cases quoted or examples of these actions undertaken by the lenders. So all in all MEH!
  • Ken | 26 Apr 2016, 09:51 AM Agree 0
    Cannot see how this article is even close to the truth. tighter controls, more declines, lower borrowing capacity all would seem to mean a increase rather than a reduction in standards.

    question is - why is the Australian Broker publishing these "comments" when theyt would seem to be inaccurate?
  • Steve McClure | 26 Apr 2016, 09:58 AM Agree 0
    Correct me if I'm wrong, but Jeff Morris, however well intentioned, has never been a mortgage broker and would have little knowledge of the process today. How can he comment with authority? Also, LF Economics have waged an unwaivering doomsday campaign for the past 4 years on property - during a time when property has performed very strongly. When they author blogs such as "Australia, Boom to Bust", I doubt we're going to get a different view, let alone balance.
  • Sunshine Coast Broker | 26 Apr 2016, 10:10 AM Agree 0
    What a load of crap.. brokers have all pay slips verified by the credit assessors at the Banks, all documents we submit are also assessed for accuracy.

    We only submit deals we know are accurate and we know will be verified. The consequences of any thing other than honesty is Fraud ...which I find an appalling allegation to throw over the good names of most brokers.

    It is completely unfair for mediocre economists trying to gain publicity for their broken down low profile careers to slander the good name and reputations of all Brokers and Bank credit assessors.

    It is also unfair of Australian Broker to give oxygen to this story.
  • CBD Broker | 26 Apr 2016, 11:22 AM Agree 0
    I agreed with Steve McClure, I hope Jeff Morris is referring to CBA and not directly at the brokers. As brokers, we all seen too many cases where we can't possibly get the customer passed the line but the majors can.

    A bank mobile lender or an officer in the bank does not have to submit a payslip with their deals. All they have to do is tick the box.
  • Broker | 26 Apr 2016, 03:04 PM Agree 0
    Yes I agree there is fraud , particularly at branch level as recently I knocked back a client as the Centre link statements presented were over 12 months old , and the new ones that I requested had reduced the income by about 50% ( as a dependant had turned 18 ) therefore the loan would now not service on the reduced income levels.

    In branch world they just accepted the statement that was over 12 months old , despite the income being way out of date. Pretty responsible hey!
  • Exbank | 28 Apr 2016, 12:02 PM Agree 0
    You kidding!! Worked in banking for many years, most recently 18 months ago, including CBA. Complete validation is required, including payslips and bank statements. The credit review process is full on. Article is pure baloney!!
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