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A Victorian mortgage broker has had his credit licence cancelled after ASIC raised concerns about his conduct.
ASIC said Parmjit Singh had been “reckless” in the way he prepared loan applications.
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“Mr Singh has agreed to cancel his Australian credit licence after an ASIC surveillance found that between 2010 and 2013, he failed to verify documents supplied in support of about 40 loan applications to various banks,” according to the regulator.
“Mr Singh has also agreed not to apply for a licence or participate in the consumer credit or financial services industries for five years.”
According to ASIC, the Dandenong broker failed to verify payslips, bank statements and employment references “in circumstances where suspicions should have been raised as to whether these documents were valid”.
ASIC said it was concerned that Mr Singh was not fit to engage in credit activities because he was “reckless about whether the loan applications contained false information”.
Deputy chairman Peter Kell said that “under the credit legislation, brokers, as well as credit providers, have important responsible lending obligations. ASIC will take action where it identifies mortgage and finance brokers who knowingly or recklessly submit false loan documents.”
Mr Singh is a member of the MFAA, according to the association’s website.
ASIC announced a crackdown on loan fraud earlier this month, while the regulator imposed three-year bans on two brokers last month. The MFAA also announced a fortnight ago that it had expelled a Sydney broker.
