Crooked mortgage brokers face blacklisting
The Mortgage Industry Association of Australasia has set up a disciplinary tribunal to protect consumers and rule on the conduct of its members. It will establish a blacklist of brokers who act unethically and expel or suspend brokers found to have committed fraud or other illegal acts. Until now, the ombudsman could award a cheated consumer up to $100,000 but could not prevent transgressing mortgage brokers from continuing to practise. The MIAA says it's already examining five complaints and will name expelled brokers on its website. An investigation by the Australian Securities and Investments Commission this year found that consumers are being duped into signing to pay thousands of dollars in fees by unscrupulous brokers operating in the absence of a regulatory framework.