Mortgage fraud involving foreign investors is not a systemic problem in the mortgage broking industry, the Finance Brokers Association of Australia (FBAA
) has said, but the industry must unite to combat fraudulent brokers.
’s Peter White
says the broking industry, just like every other industry, will have people who “cross the line” but the vast majority of the industry is professional and responsible.
“Ninety nine per cent of brokers are doing the right thing but unfortunately, like in any industry, there is a tiny element who cross the line, particularly when it comes to the repayment of loans that rely on foreign income from certain countries.” White said.
White’s comments have come after several lenders announced tightened lending conditions for foreign borrowers last week.
The National Consumer Credit Protection Act (NCCP) and ASIC have done a good job in exposing dishonest practices, according to White, but now he is calling on the industry as a collective to rally and report any dubious and suspicious acts carried out by brokers.
“We must unite and not let a very small number of deceitful brokers get away with smearing the honest work done by the others. It is time to kick them out of our industry.”