Mortgage broker loses credit license after failing to verify documents

Jessie RichardsonDecember 7, 2020

A Dandenong based mortgage broker has agreed to cancel his credit license after concerns from ASIC that he was failing to verify documents.

Parmjit Singh did not verify payslips, bank statements and employment references in support of about 40 loan applications to banks, even though they were of questionable validity.

ASIC was concerned that Singh appeared reckless about potentially false information from prospective buyers about their income and employment statuses, noting that he may not be a “fit and proper person to engage in credit activities.”

Singh has also agreed not to apply for a license or participate in the consumer credit or financial services industries for five years.

According to ASIC deputy chairman Peter Kell, brokers and credit providers have important responsible lending obligations.

“ASIC will take action where it identifies mortgage and finance brokers who knowingly or recklessly submit false loan documents,” said Kell.

Singh is one of several mortgage brokers who ASIC has taken action against in recent months. Other brokers found to have submitted questionable or false information on loan documents include Hyuk Hwang, who was banned from engaging in credit activities for three years after providing false documents to secure a $250,000 loan and Daniel Minh Tuan Nguyen, who has been permanently banned after being convicted of providing false documents to secure loans totalling about $3 million.

In January, ASIC banned Anthony Bergin from engaging in credit activities for three years after his company submitted seven home loan applications, worth a total of $3.2 million, containing false or misleading information.

jrichardson@propertyobserver.com.au

 

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