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Banking system "blighted" by fraud

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Your Investment Property | 27 Apr 2016, 02:58 AM Agree 0
Economists claim fraud is widespread in Australia's banks, particularly in the mortgage sector
  • Rob | 27 Apr 2016, 03:07 PM Agree 0
    I refer to Jeff Morris' comment “You've got [mortgage] brokers and lenders, who are remunerated on the number of loans they write, simply massaging the figures to put it through the computer system, and then it spits out an approval.”
    What Mortgage Broker submitted loan is approved on the basis of a number that the broker types in? - NONE. Brokers provide the supporting documents such as payslips, to the lender, the lender cross checks broker input with their own assessment and adjusts accordingly if needed. It has always been like this as brokers are not Credit Assessors. This is common knowledge so it concerns me deeply that a Whistle Blower gets such detail incorrect. As a broker of 16 years I can honestly say I've never had a credit assessor go outside the evidence provided in order to provide an approval. I can't speak for the branch channel however.
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