MFAA's CEO Phil Naylor has discounted allegations of low doc fraud being rife in the industry.
He told Australian Broker Online
"very few" of the complaints the MFAA
has processed have involved fraud.
"You would expect, if low doc fraud was as rampant as is suggested, we would have been inundated with low doc fraud complaints."
He claimed low doc loans were just a small proportion of all loans signed by brokers.
"The other thing to remember is that while low doc loans gained popularity in the past decade, they have never constituted a major proportion of loans written."
Naylor played down the effect such allegations, made public on Monday in The Australian newspaper, would have on the public perception of brokers.
"I think the overwhelming good support that consumers give brokers overrides stories such as this, and most people will see through the exaggerated allegations," he said.
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