Mortgage fraud: NAB issues warning on $4 billion fraudulent home loan activity
One of Australia’s big four banks has called for a national strategy to combat an estimated $4bn in fraudulent home loan activity.
One of Australia’s big banks is putting dodgy domestic and overseas mortgage fraudsters on notice and calling for a national economic crime strategy.
Australia’s big banks are in the midst of internal investigations and referrals to police and regulators over questionable home loans sought by outside agents, and over the weekend NAB put out a call for a national economic crime strategy.
“Tackling this threat effectively requires a step change in how banks, regulators, law enforcement, and government work together,” NAB investigations executive Chris Sheehan said.
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Australia’s five largest lenders estimate there may be $4bn of fraudulent mortgages that have purchased homes in Australia.
The government agency responsible for investigating financial crime, AUSTRAC, already has a public-private partnership called Fintel Alliance. But NAB says efforts need to be strengthened.
“Industry efforts alone are not enough,” Mr Sheehan said.
“NAB is calling for the development of a national economic crime strategy.”
A national strategy would “develop a co-ordinated national approach” for better intelligence sharing, “deeper cross sector collaboration, and more consistent regulatory settings to fight economic crime at the source”.
“Tackling this threat effectively requires a step change in how banks, regulators, law enforcement, and government work together,” Mr Sheehan said.
In a sweeping expose published Sunday, the Australian Financial Review reports lenders and the government are working on a register of mortgage brokers who have been involved in questionable or fraudulent deals. The register may be widened to include bank employees who have committed wrongful or non-compliant acts.
The AFR expose details how former bank staff who have been sacked have re-emerged as mortgage brokers and the connections some have to alleged mortgage fraud.
The AFR obtained an internal NAB investigation that found groups had used fraudulent financial statements and tax assessments to get loans.
Originally published as NAB issues mortgage fraud warning
