Resi defends its actions after fraud claim

by Caroline Dann14 Aug 2012

Resi has told Australian Broker Online it acted “appropriately and prudently” after fraud claims were made against it.

Resi client Gary White claimed yesterday the mortgage broker forged his signature and ‘inflated his income’ on his low doc application in 2008. 
He admitted he was still unable to find an authority willing to take action, after four years of presenting his case to industry regulators.
Lisa Montgomery, CEO of Resi said her company had followed correct procedure after White’s claims of fraud and that “all avenues have been explored.”
“We take these issues and accusations extremely seriously. We’ve never had an accusation of this nature before.”
The story, printed in The Australian, also stated loan application fraud was rife prior to the GFC.
Montgomery said such statements were not entirely accurate.
“Pre-GFC, there was a prevalence of loans that could be accessed with virtually no documentations… But that’s now been wound back by lenders and mortgage insurers,” she said.
She added low doc loans were essential to small business owners.
“It’s been a good thing for borrowers. They’re still a great vehicle for self-employed people to access finance.”
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  • by Phil 14/08/2012 1:53:24 PM

    When will client take responsibility for their own actions? At that time all the client basically had declare was that they could afford the debt. No fraud committed, lenders happy, insurers happy, and client happy. As soon as things get tight the client starts looking for someone to blame. Take responsibility for your own actions people. It’s not brokers fault that sometimes people get into difficulty later on down the track.