The FBAA’s Peter White has slammed the results of the recently released UBS survey, claiming that factually inaccuracies are rife in mortgage applications stemming from the broker channel.
The Finance Brokers Association of Australia (FBAA) has defended the broker channel against claims by a UBS survey indicating some brokers are advising clients to misrepresent figures on their applications.
The FBAA’s Peter White said the survey claimed that about 6%, or 84 of the 1228 borrowers surveyed said the broker directed misrepresentations in loan applications.
According to the survey, 60% of the borrowers in the sample secured their mortgage from a broker, slightly higher than the nationwide figure.
UBS stated that participants were surveyed anonymously and said, "given the large number and spread of participants, these findings are statistically significant with a 95% degree of confidence".
The report also stated, "If anything, we believe this data is likely to understate the level of misrepresentation as some respondents may not feel comfortable stating they were not completely factual and accurate even in an anonymous survey."
But White has questioned the accuracy of the whole survey, saying the amount of people purportedly surveyed represents only an estimated 0.09% of all mortgages settled over the two year time period, and a number of the figures in the survey were inconsistent with APRA data and Industry data.
He also said there was “zero credibility” in the claim of a borrower who admits to falsifying documents.
“Let’s be honest – if you are admitting to misrepresentation on a legal document it’s very easy to blame someone else and claim they made you do it.
“This really should not be taken seriously, particularly with the stringent regulations around the broking sector and responsible lending criteria which brokers adhere to.”
White said the FBAA would not tolerate any unethical behaviour and that there was no incentive for brokers to misdirect clients.
“Our own data tells us that only a miniscule percentage of our members have had action taken against them and that overall, brokers are doing the right thing.
“I believe that not only are these figures wrong but that they are based on claims that can never be verified.
“It is a shame for the industry that this sort of misinformation is publicised but I am confident the regulators, the industry and the public know the truth.”
The FBAA’s Peter White said the survey claimed that about 6%, or 84 of the 1228 borrowers surveyed said the broker directed misrepresentations in loan applications.
According to the survey, 60% of the borrowers in the sample secured their mortgage from a broker, slightly higher than the nationwide figure.
UBS stated that participants were surveyed anonymously and said, "given the large number and spread of participants, these findings are statistically significant with a 95% degree of confidence".
The report also stated, "If anything, we believe this data is likely to understate the level of misrepresentation as some respondents may not feel comfortable stating they were not completely factual and accurate even in an anonymous survey."
But White has questioned the accuracy of the whole survey, saying the amount of people purportedly surveyed represents only an estimated 0.09% of all mortgages settled over the two year time period, and a number of the figures in the survey were inconsistent with APRA data and Industry data.
He also said there was “zero credibility” in the claim of a borrower who admits to falsifying documents.
“Let’s be honest – if you are admitting to misrepresentation on a legal document it’s very easy to blame someone else and claim they made you do it.
“This really should not be taken seriously, particularly with the stringent regulations around the broking sector and responsible lending criteria which brokers adhere to.”
White said the FBAA would not tolerate any unethical behaviour and that there was no incentive for brokers to misdirect clients.
“Our own data tells us that only a miniscule percentage of our members have had action taken against them and that overall, brokers are doing the right thing.
“I believe that not only are these figures wrong but that they are based on claims that can never be verified.
“It is a shame for the industry that this sort of misinformation is publicised but I am confident the regulators, the industry and the public know the truth.”
