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.
ASIC spokesperson, Daniel Wright, says the organisation is seeing a ‘continuing’ trend of fraud within the mortgage broking industry and says it’s the category of misconduct involving brokers that is, in fact, most regularly reported to ASIC.
“ASIC is particularly concerned with instances where persons have engaged in fraud or other misconduct relating to information provided in loan applications. Since the commencement of the NCCP, ASIC has banned six persons from engaging in credit activities for such conduct and has 18 other current investigations. ASIC has also secured criminal charges against one finance broker under the responsible lending provisions of the NCCP.”
But MFAA CEO, Phil Naylor, argues that fraud remains a relative rarity in the mortgage broking industry, accouning for less than a handful of finance industry cases.