http://www.abc.net.au/news/2012-08-13/mortgage-broker-blows-whistle-on-big-banks/4195920ABC News said:A WA mortgage broker who got rich by "fudging figures" has blown the whistle on the banks that conspired in Australia's own sub-prime mortgage scandal.
In 2007 Kate Thompson was WA mortgage broker of the year. Now she is facing fraud charges.
It is alleged Mortgage Miracles, in Canning Vale in Western Australia, obtained investment loans for customers by using falsely inflated earnings and assets.
Ms Thompson admits that is exactly what she did.
"I would get upfront commission, I would get a trailing commission. I was probably earning about $5 million a year. It was great. It was wonderful. But it was all a lie," she said.
But she was not alone.
"Hook me up to a lie detector test and hook them up. I'll lay my evidence on the table. They will fail a lie detector test miserably. They are corrupt. They are protecting each other," Ms Thompson said.
Along with similar claims before a parliamentary inquiry in Canberra last week, her evidence has the potential to rock the finance industry.
"Through a series of emails from banks to brokers how to get their deals across the line, make the deal fit. They targeted older people, people on carers allowance, age pensions," Denise Brailey, from the Banking and Finance Consumers Support Association, told the inquiry.
It seems as though the Australian banks have been engaging in the same practices as their US counterparts. They have supposedly been involved in issuing loans to applicants who have little to no income after co-operative mortgage brokers falsified the applicants details.
I believe that this was presented (and is still being presented) to the Senate during the past week by Denise Brailey, a financial/RE consumer advocate. It is not only interesting to find out that our banks have been engaging in fraud, but also that our government is now holding ~$50 billion in RMBS - 10% of which could be fraudulent and/or worthless.