An Australian Broker poll has uncovered startling results, with 85%* of respondents claiming banks encouraged fraud during the pre-GFC.
The question - did banks encourage fraud during credit boom times - elicited a 'no' response from just 10% of respondents.
The issue of low doc fraud has been hitting national headlines this month, initially sparked by controversial exposés by The Australian newspaper, the ABC and Seven network's Today Tonight program.
A former WA broker, now charged with fraud, claimed banks actively encouraged brokers to tamper with loan application forms to meet lending criteria.
It sparked heated debate, with several figures concerned it could result in a damaging overhaul of the mortgage lending industry.
*Editor's note: At the time of going to press on Tuesday 21st August, the results were 85% yes, 10% no, and 5% maybe out of 216 respondents
: There is no subprime scandal