Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Mortgage fraud on the rise

Staff Reporter 4 minute read

Sydney mortgage brokers are being urged to rigorously check the identity of new borrowers, as the number of identity fraud schemes operating across Australia soars.

According to ABC News, residential mail is being stolen from letterboxes throughout Sydney and then used by fraudsters to satisfy 100 point identification checks for loan applications.

Police believe the recent spate of stolen mail could be part of a larger mortgage fraud syndicate.

NSW State Crime Command media liaison officer Nikki Woloszuk told Mortgage Business that mortgage fraud can occur as a result of several factors including false information regarding the existence of a property, or the capability of a borrower to repay the loan (inflated income), as well as false property valuations.

Advertisement
Advertisement

According to Ms Woloszuk, there are simple steps brokers and lenders can take to prevent mortgage fraud.

“When dealing with a new borrower, brokers and lenders should ensure they randomly check the information provided by loan applicants, use targeted questioning of the individual regarding their employment and/or personal details, as well as ring and check phone numbers provided by the applicants,” she said.

Ms Woloszuk said it is also important for lenders to conduct a physical inspection of the property the applicant is seeking to mortgage.

“Offenders can have industry experience and can make use of loopholes. It is advisable to physically view the [security] property,” she said.

Mortgage fraud on the rise
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

PROMOTED CONTENT


default

 

more from the adviser
Darren Stratford Dianne Robinson Kristie Oldfield ta RedZed appoints BDMs, product manager

The lender for self-employed borrowers has appointed two BDMs in ...

digital money ta Wisr closes $5m raise

Wisr has wrapped a $5 million capital raise to accelerate its loa...

digital signatures Suncorp enables e-signatures on post-approval loan docs

The non-major bank has said that it will accept e-signatures on p...