Poll: 85% of brokers say fraud was encouraged

by Caroline Dann21 Aug 2012

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
 
Related news:
 
MFAA: There is no subprime scandal
 

COMMENTS

  • by John Turner 22/08/2012 4:16:42 PM

    What most Brokers should watch out for is the Banks shifting the blame of the Low Doc scandal onto the Brokers. As a BFCSA member, I have witnessed the banks 'chatter' on this getting louder. Anyone want a solution to beat the banks on this?

  • by BlackedOut 22/08/2012 5:30:47 PM

    Everyone is content the deceptions are over. lets just get on and sign up more clients.it will happen again probably it will be a name change or one lender is getting too much market share so the other lenders will drop there pants and take on any client and we wont do any checks USA style.We are not obliged the banks said we will look after you Haha
    Laws where put in place to help protect people who do trust Banks and Brokers to do what is right. Not just get them a loan for commission sake.Brokers watch your back

  • by Michael Wren 21/09/2012 12:29:58 PM

    As the "Whistle Blower" on the 7:30 report, I can only beg honest brokers and advisers to come forward and tell the entire truth. I was approached and unsort pressurred to fabricate lies by a BDM from Macquarie Bank. I know I was NOT the only one, come forward tell the truth and stand up for those most damaged clients!! PLEASE!!