Fraudsters found fiddling the figures
Mortgage banker Cairns Lockie has reported a growing number of people faking their financial information in a bid to obtain mortgage finance.
Monday, October 25th 1999, 12:00AM
by Paul McBeth
Mortgage banker Cairns Lockie has reported a growing number of people faking their financial information in a bid to obtain mortgage finance.
The company says it has received three different applications in the past month alone where potential borrowers have fraudently altered information. However, in each case they were amateurly done and easy to spot.
Cairns Lockie says fraud is occurring at increasing frequency here and is already a real business problem for lenders across the Tasman. It says this explains why mortgage lenders are paying stricter attention to detail, and why they need to see original salary or wage slips, original application forms and original copies of valuations.
While there have been more elaborate scams in New Zealand involving a bunch of property specialists working together, these latest examples have just been individuals trying to pull a fast one.
The frauds included:
- Changing a bank statement to show a savings record higher than it actually was (the different style of typing was a major giveaway);
- An incorrectly completed statement of position; and
- Falsely presented annual accounts, which were picked up by a routine call to the accountant concerned.
New Zealand Mortgage Brokers Association chairman Rob Tucker says he's not yet aware of any increase in reported fraud, "so I hope this isn't a forerunner of anything."
Meanwhile Steve Seal, marketing manager for Mike Pero Mortgages, says the company has had a few such cases but says they were isolated incidents.
"We've had people misrepresent themselves and misrepresent their earnings," Seal says. "That's why we're very careful about what information we supply to the bank as it's our credibility on the line."