Move comes after bank uncovered $1 billion in potentially fraudulent home loan applications
Commonwealth Bank has reported two yet-to-be-named brokers and numerous accountants to the authorities over suspected home loan fraud, according to an AFR report.
It comes less than two weeks after CBA reported itself to the authorities and regulators over a suspected $1 billion worth of fraudulently obtained home loans.
CBA suspects that home loans are being processed with fake documents and income statements, including AI-generated forms.
According to the AFR, which quoted “people with detailed knowledge of the investigation”, CBA has been working with NSW Police, the Australian Securities and Investments Commission (ASIC) and the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Several accountants allegedly used fake income statements to inflate clients’ incomes. They helped brokers push loans through while also pocketing commissions by sending customers to CBA under the bank’s referrer program, which pays eligible partners an upfront fee when a loan is settled.
CBA's referrer program currently accepts referrals from accountant, solicitors, lawyers, conveyancers, real estate agents and financial planners.
The mortgage industry is facing “sustained and increasing levels of attempted fraud, driven by criminals who actively evolve their methods”, a CBA spokesperson said when it self reported itself less than two weeks ago.
They added: “This is an industry-wide challenge, with fraud being attempted through mortgage broking and referral channels.
“Like others, we have increased our focus on financial compliance, and we’re continually reviewing our policies and processes and making changes to help protect our customers, the bank, and the community.”
CBA has decided not to provide further comment on the situation for now.
Referrer programs have drawn scrutiny in the past.
Following regulatory scrutiny and the Royal Commission, NAB announced it was ending referral payments and discontinuing the home‑loan referral/introducer scheme around 2019.
NAB was fined $15 million in 2020 after ASIC uncovered misconduct in its referrer program between 2013 and 2016.
