New figures have revealed the level of mortgage fraud has almost halved two years after the national licensing regime came into force.
According to data from Veda, there were just over 6,500 incidents of mortgage fraud recorded in 2011 – the year that NCCP licensing came into effect.
That figure is significantly lower than the 11,000-plus incidents recorded in 2009.
Speaking to The Adviser, Gadens' partner Jon Denovan said the reduction could be attributed to the introduction of licensing.
“Brokers are more professional than ever before,” he said.
“As such, they are more diligent when it comes to checking loan applications and the supporting documents submitted by borrowers.
“Brokers do not and will not put their licence in jeopardy. They understand there are severe repercussions if they are caught doing the wrong thing, and, as such, they will go out of their way to ensure everything is done correctly and above board.”
Mr Denovan said rigorous NCCP requirements have undoubtedly forced out of the industry brokers who would be willing to falsify loan documents for a “friend”.
Mr Denovan said in addition that brokers also understand ASIC is starting to “crack down” on the mortgage broking industry.
In the past week alone, the industry watchdog suspended the credit licence of two brokers while according to a spokesperson from the commission, ASIC currently has another 18 investigations underway.
“ASIC will continue to concentrate on the mortgage broking industry and ensure that brokers are adhering to the new [NCCP] laws,” the spokesperson told The Adviser.
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