Mortgage broker’s credit licence suspended

A DANDENONG-BASED mortgage broker will be out of the industry for five years following concerns about his conduct.
Parmjit Singh agreed to cancel his Australian credit licence after Australian Securities and Investments Commission (ASIC) surveillance between 2010 and 2013.
The investigation found he failed to verify documents supplied in support of about 40 loan applications to various banks.
Mr Singh also agreed not to apply for a licence or participate in the consumer credit or financial services industries for five years.
ASIC found that in preparing loan applications, Mr Singh obtained information from home loan applicants, but failed to verify payslips, bank statements and employment references in circumstances where suspicions should have been raised on the validity of the documents.
ASIC was concerned Mr Singh was not a fit and proper person to engage in credit activities as he was reckless about whether the loan applications contained false information about the prospective borrowers’ income and employment.
“Under the credit legislation, brokers, as well as credit providers, have important responsible lending obligations,” ASIC deputy chairman Peter Kell said.
“ASIC will take action where it identifies mortgage and finance brokers who knowingly or recklessly submit false loan documents.”