MFAA: There is no subprime scandal

by Caroline Dann20 Aug 2012

The MFAA has today rejected calls for a Royal Commission into low doc lending practices.

CEO Phil Naylor claims the calls, made last Monday by Democrats housing spokesman David Collyer, are unwarranted.
Collyer had referred to the low doc scandal as Australia's own 'subprime crisis' - a direct reference to the US mortgage disaster of 2007.
“The Australian Democrats and some in the media have confused low doc loans with the subprime crisis that hit the US and other overseas markets," he said.
“There has been no evidence of such subprime lending in Australia, while the incidence of fraudulent applications being written for low-doc loans is miniscule."
Naylor's media release follows his comments to Australian Broker Online earlier this week, where he denied the prevalence of fraud in low doc lending.
"You would expect, if low doc fraud was as rampant as is suggested, we would have been inundated with low doc fraud complaints," he said.
Meanwhile, The Australian newspaper is continuing to release evidence of fraud.
Today the paper claimed Firstmac was refusing to provide low doc clients with their original loan applications, despite accusations of tampering and forgery.
In another twist, the former Westpac bank manager accused of unscrupulous lending to elderly clients was discovered to be a 1300 Home Loans broker.
1300's CEO John Kolenda confirmed to media the man was suspended earlier this month, pending a full investigation.


  • by Country Broker 20/08/2012 10:25:45 AM

    This sis good to see our professional association doing this, well done Phil Naylor .

  • by Peter Wood 20/08/2012 11:35:08 AM

    I would highly recommend that David Collyer review a sample of low doc and no doc applications during the period of say 2005 and 2008 and lets see what the answer is ?

  • by Dean 20/08/2012 3:07:32 PM

    Excuse me Peter but what right do you think he has to review private, personal and financial information without the specific consent of the borrowers involved