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ISCOVER
Staff Reporter
In a bid to curb the level of mortgage identity fraud in NSW, the state government is gearing up to introduce a new ‘safe harbour' method of borrower identification.
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Currently, the NSW legislation does not specify any particular method of identification that must be used when verifying and witnessing mortgage documents.
However, under new legislation to commence on 1 March 2011, the government will require the lender to identify the borrower by sighting original or certified photo identification, and for a third party witness to similarly identify the borrower by sighting original photo or non-photo ID.
Under the new draft laws, witnesses can face a $1,100 penalty for breaching the regulations.
A similar regulation currently exists in Queensland, and was introduced back in 2006 to help identify borrowers, following after a spate of mortgage fraud incidents.
