Join Australia's most dynamic and respected property investment community

Rogue Brokers

Discussion in 'Property Finance' started by Redwood, 6th Sep, 2016.

Tags:
  1. Redwood

    Redwood Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    342
    Location:
    Melbourne
    Hey all,

    Surprised this hasn't been posted. On here - I will say that generally, most professionals here if not all are ethical operators. They have been on the forums for a while and developed a reputation for y'all to approach them.

    Now what annoys me are the brokers and other professionals that will do anything for the commission.

    Here is an example
    Mortgage broker convicted for fraud

    This annoys the hell out of me.

    This clown has committed fraud and obtained a significant financial benefit. Has he hurt someone physically? maybe not. Thats not the point.

    Continually, as brokers, we must act with integrity at all times.Personally, I know all my clients and will never tailor information to suit the deal. The risk will outweigh the benefit at all times. Many years in risk has taught me this.

    However - what if you actually intentionally doctor information? we know many do this, perhaps this is why the banks have exited the non-resident lending space.

    So whats the consequence? 18 false applications with god knows how many dollars in commissions and this is the consequence:

    "Mr Nair was charged $1,000 and convicted and released on the condition that he be of good behaviour for three years"

    Fair dinkum! What a disgrace.

    I have seen ASIC destroy individuals for false advertising which was gray and this is the impact of 18 applications and proven fraud.

    What a disgrace.

    I am sure the other brokers that invest a significant percentage of their commission in compliance will be disgusted by this as am I. Note - its Aussie Home Loans

    Cheers Ivan
     
    albanga and Terry_w like this.
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,952
    Location:
    Sydney
    I have heard that some of the top 10 brokers of a certain aggregator have been banned for fraud - mainly Chinese connected brokers. The MPA top 100 may look different next year.
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,091
    Location:
    Melbourne, Nationwide
    Seems strange. ASIC has come down much harder on others in the past for the same offense.

    This sort of thing is incredibly stupid. If you have to falsify documents to qualify for a loan, sooner or later a borrower will run into problems and will default. When that happens the loan gets investigated and the borrowers story will be cross referenced to the original application. That paper trail goes straight back to the broker. Then all the other loans the broker has written get reviewed, borrowers contacted, etc. Bottom line is sooner or later the broker will get caught and they gave the bank/asic/police a clear trail of evidence.

    This isn't a victim-less crime either. Fraudulent income documents suggests lending outside legitimate borrowing criteria. I appreciate that brokers are under pressure to get loans approved more than most, but sometimes the answer has to be 'no'. Some people will borrow more than they can reasonably afford given a chance and they need to be protected from their own stupidity. Not buying the dream house is nowhere near as bad as the consequences of buying the house and then going through a repossession and bankruptcy.
     
    albanga likes this.
  4. abbyfresh

    abbyfresh Well-Known Member

    Joined:
    2nd Jul, 2015
    Posts:
    67
    Location:
    VIC
    It comes down to the ethical standards and personality of the individual most likely the same before they were a broker, noted some change though and get too greedy