NAB has announced that it has fired 20 bankers in NSW and Vic, disciplined 32 people and begun remediation for customers following the discovery that more than 2,000 home loans were submitted with inaccurate information.
The major bank released a statement on 16 November highlighting that, since 2013, around 2,300 home loans submitted through NAB’s Introducer Program by bank staff “may have been submitted without accurate customer information and/or documentation, or correct information”.
The discovery follows an “extensive review” by NAB after a staff member highlighted issues internally, and after ASIC advised the bank of issues during a review of their processes in October 2015.
NAB’s chief customer officer – consumer banking and wealth management, Andrew Hagger, said: “What occurred was unacceptable. We have investigated this matter thoroughly, and, as we have always said, whenever we find issues we will investigate them, fix them and hold people to account — and we did.”
The bank has already terminated 20 employees in New South Wales and an additional 32 bankers had “consequences” applied, such as the reduction of remuneration.
The bank has begun writing to affected customers, many of whom live overseas, asking them to participate in a detailed review of their loan, which may include verification of documents submitted at the time of their home loan application.
Affected customers may be offered compensation for the loans, which may have been mis-sold, where appropriate.
The bank said: “NAB has engaged with ASIC to ensure the remediation program provides fair outcomes for customers. The remediation program has been designed with reference to the methodology applied by the Financial Ombudsman Service, and with NAB’s standard approach to compensating customers.
“NAB will engage an independent expert to undertake regular audits of the remediation program, and will update ASIC every two months on its progress.”
Mr Hagger added: “I want to assure all of our customers that we have improved our systems, processes and programs as a result of what occurred here.”
Annie Kane is the editor of The Adviser magazine, Australia’s leading magazine for mortgage brokers. As well as writing news and features on the Australian mortgage market, financial regulation, fintechs and the wider lending market – Annie is also the host of the Elite Broker podcast and regulator contributor to the Mortgage Business Uncut podcast.
Before joining The Adviser team at Momentum Media in 2016, Annie wrote for a range of business and consumer titles, including The Guardian (Australia), BBC Music Magazine, Elle (Australia), BBC Countryfile, BBC Homes & Antiques, and Resource magazine.
A Western Sydney-based broker is donating 10 per cent of his trai...
A former CBA chief executive has expressed his views on a potenti...
The Federal Court has approved Commonwealth Bank’s $20 million ...