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Govt takes stance on mortgage fraud

Staff Reporter 1 minute read

Staff Reporter

In a bid to curb the level of mortgage identity fraud in NSW, the state government is gearing up to introduce a new ‘safe harbour' method of borrower identification.

Currently, the NSW legislation does not specify any particular method of identification that must be used when verifying and witnessing mortgage documents.

However, under new legislation to commence on 1 March 2011, the government will require the lender to identify the borrower by sighting original or certified photo identification, and for a third party witness to similarly identify the borrower by sighting original photo or non-photo ID.

Under the new draft laws, witnesses can face a $1,100 penalty for breaching the regulations.

A similar regulation currently exists in Queensland, and was introduced back in 2006 to help identify borrowers, following after a spate of mortgage fraud incidents.

Govt takes stance on mortgage fraud
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