Lenders Could Be At Risk From Mortgage Misrepresentations

According to an investment bank report in late 2017 the level of loan approvals containing misrepresentations or inaccuracies could leave lenders exposed to a housing downturn.

The first hearings of The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry in 2018 examined evidence to determine if banks have done enough to verify the information on home loan applications.

Over-valuing income from real estate assets and overvaluing the security are…