Advanced Search

Share Coverage



Category: Banking / Housing Industry / Consumer Finance / Fraud and Corporate Crime / Consumer Protection

Mortgage fraud 'systemic' in Australia, UBS survey shows

Friday, 7 Oct 2016 06:17:29 | Michael Janda

UBS surveyed 1,228 Australians who recently took out a mortgage. (ABC News: Nic MacBean)

Mortgage fraud is "systemic" in Australia, with more than a quarter of recent home buyers admitting they misrepresented some information on their loan application.

The disturbing results come from a survey of 1,228 people who had taken out a mortgage over the past two years, conducted by investment bank UBS.

The key finding was that 28 per cent of people surveyed said their mortgage application was not totally factually accurate.

Of those who admitted misstating information, the bulk said their application was "mostly factual and accurate".

However, one-in-20 mortgage applicants admitted that their loan application was only "partially factual and accurate", while 2 per cent declined to respond.

Out of the people who misrepresented parts of their application, 14 per cent said they overstated household income, 13 per cent overstated asset values, 17 per cent understated their debts, more than a quarter understated living expenses, while over 40 per cent said "other" or would not say what they had lied about.

"Unfortunately survey results suggest misrepresentation is systemic with findings similar across the 2015 and 2016 vintages, price to income levels, LVR [loan-to-value ratio], owner occupiers and investors," they wrote.

"However, there was a correlation between borrowers who misrepresented their application and: those whose expenditure was broadly equal to their income; stated they are under financial stress; or have missed a debt payment."

More to come.

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend