NAB sacks 20 bankers for incorrect documentation on 2,300 loans

National Australia Bank (NAB) has sacked 20 bankers and disciplined another 32 for selling home loans to customers whose eligibility may have been in question.

NAB said in a media release it had “commenced a remediation program for some of its customers, after a review identified their home loan may not have been established in accordance with NAB’s policies”.

Around 2,300 home loans since 2013 have been identified as submitted without accurate customer information and/or documentation, it added.

The bank became aware of the matter in October 2015, and advised ASIC in December 2015 after an initial high-level review. 

“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,” said Andrew Hagger, NAB’s chief customer officer, Consumer Banking and Wealth.

Following the investigation, 20 bankers in New South Wales and Victoria have been sacked while another 32 bankers had “consequences applied” including pay cuts.

Many of the customers who took the loans in question are from overseas and NAB has has commenced writing to them 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. 

It said affected customers may be offered compensation as appropriate.

NAB said it is working 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,” said the media release.

“I want to assure all of our customers that we have improved our systems, processes and programs as a result of what occurred here,” Hagger said.

The changes will apply to NAB’s Introducer Program, including enhanced governance and eligibility criteria.