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​Fraudulent brokers in ASIC’s crosshairs

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Australian Broker | 12 Dec 2013, 08:00 AM Agree 0
ASIC has revealed it is currently investigating 20 cases of falsification of loan documents or applications, while stating that fraud by brokers 'will not be tolerated'.
  • Dave Robinson | 12 Dec 2013, 09:00 AM Agree 0
    Great this is what we want/need from our regulator. Well done. Any news on ASIC tackling the fraud conducted through lenders and their branches and any news on how ASIC is being proactive in this area as the above only points to being reactive (refer comment "through reports from AUSTRAC, lenders, industry bodies and consumers").
  • Regional Broker | 12 Dec 2013, 09:11 AM Agree 0
    This sis great news , lets get rid of the rouge elements in our industry . Big news for ASIC they are doing what they need to do at last.

    When we think about this it is also good news for the industry , 20 brokers out of 11,000 plus is a very low number , not an excuse for these rouges , just an observation.
  • GC | 12 Dec 2013, 10:34 AM Agree 0
    Over the years it has been obvious the majority of fraud (for want of a better word) has been conducted through the banks and NOT via the broker chanel. Brokers are for the most part, honest as its our livelihood at stake so its in our interest to fiercely protect it and be honest. I am not sure why ASIC think we should be in their "crosshairs". In fact the fraud issues are discovered by the lenders and NOT ASIC so ASIC shouldnt be accepting the so called accolades for catching these idiots. It time ASIC focused their attention on the bigger problem - the banks own staff. If they are to clean up the undustry they really need to start with the banks.
    I am all for eliminating the rubbish from the industry but it the eye must be cast over the entire industry and not just half because its easier.
  • Positive Broker | 12 Dec 2013, 10:57 AM Agree 0
    We should applaud ASIC in this regard. As an honest broker I have zero sympathy for anyone who jeopardizes the integrity of this great industry. I also agree with Dave, they need to keep an eye on the mobile lenders and business managers out there to make sure they operate to the same high standards as the broking fraternity

  • SIDBROKER | 12 Dec 2013, 11:09 AM Agree 0
    And ASIC rattles its chain again. Is this not called job justification. Come Mr. Abbott. We can save a lot of our wasted money here.
  • Old Joe | 12 Dec 2013, 11:24 AM Agree 0
    Would be nice to see if ASIC can pick up Foreign Buyers laundering their money into mortgage payments to get their money out of ASIA. AML placement and integration or what. And presto sell the home and its all tax free...welcome to Australia ...wonder if any bank network with no broker networks are into this.?
  • Denise Brailey BFCSA (Inc) | 12 Dec 2013, 11:38 AM Agree 0
    ASIC is blowing hot air. 20 complaints? Our members sent ASIC 150 which it refuses to investigate. The evidence shows it is fraud INTERNAL to the LENDERS. The LAFs are being altered after the Broker faxes the paperwork to the credit assessors. ASIC knows this as I spent 150 mins briefing the Commissioner. Its not the Brokers. The evidence shows its THE BANKS. ASIC wants Brokers to turn on each other and believe its a few rogue brokers. That is false. How do we then explain why 100% of the LAFs we have uncovered have been tampered with? That's why we asked all Members to ask for Bank's copy - it differs remarkably from Broker copies.
    How has that happened? 100% of Brokers etc? No not at all. The culprits are internal to the Bank. The fax marks are your evidence.
  • Keith of the West | 12 Dec 2013, 11:44 AM Agree 0
    What ASIC don't take into consideration is the fraud by Bank employees with customer documentation is running wild and unreported ~ is happening every day as pressured sales staff are set unrealistic sales targets to keep thier job (and salary). The difference when detected is banks' have the financial muscle to quell the storm internally, sometimes offering settlement by way of interest free loans and killing any potential of a complaint.

    The employee of course is shown the door or recives a Conduct Breach! Seen this myself many times in big corporation!
  • mac | 12 Dec 2013, 12:03 PM Agree 0
    Great. Now waiting for one single disqualification of a bank staff member. Surely they must be held to the same standards ASIC?
  • Tim | 12 Dec 2013, 12:21 PM Agree 0
    Let's hope that ASIC taken action against those involved and not the natural response of so many managers across organisations in Australia, which is to not show any leadership at all and hold individuals to account, but rather load up everyone else with more rules, and compliance, which the bad eggs don't follow anyway.
  • Melbourne Broker | 12 Dec 2013, 04:38 PM Agree 0
    Whilst it is great to see ASIC doing something in relation to brokers the question still remains - what are ASIC doing about the fraud that is being committed by the banks?
  • VIC Broker | 13 Dec 2013, 11:57 AM Agree 0
    Good job ASIC, but you need to do BETTER!

    Just a small sample, my client turned up asking for solutions cuz he knew his credit file was not 'that good'. Veda check showed he was bankrupt recently and of course I could not have any solution. About 2 weeks later he called back complaining us as 'a big bank' of a local branch (I knew exact details) had approved his application after we refused his file. How this was to happen while we all know that only non-conforming lender would take bankruptcy!?

    This is not fair while we're all working hard here and the banks just relax doing anything they like knowing that NO ONE could ever touch them!
  • Denise Brailey BFCSA (Inc) | 13 Dec 2013, 02:09 PM Agree 0
    Yes Vic Broker, we see this time and again. A Lender will not accept the app and a Major will pick it up and approve via internal staff. There has to be open and accountable lending to make it a fair and level playing field. Brokers should ask clients to recover the bank copy of the LAF.
  • Melanie Burns | 18 Dec 2013, 11:48 PM Agree 0
    @ VIC Broker : Non-conforming lenders cannot lend to current bankrupts either. It is illegal for someone who is still in their bankruptcy, or Part 9 for that matter, to borrower monies. If they were discharged then the non-conformers could assist.
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