Twenty National Australia Bank (NAB) bankers in Victoria and New South Wales have been fired or left the bank, after they were found to have breached policies on 2,300 home loans.
A further 32 bankers have been punished for failing to follow policies when writing loans.
Some loans may have been based on false information such as incorrect documents and payslips. NAB is now contacting the loan owners to ensure their accuracy.
It is thought that a majority of the loans went to foreign buyers.
The dodgy information was often the result of information being provided by middlemen, rather than the customers themselves.
“It’s the banker’s role to accept information from the customer. It’s not the banker’s role to accept information from the introducer,” NAB chief customer officer for consumer banking and wealth, told The Sydney Morning Herald.
These “introducers” were first identified as problematic in late 2015. Since then, NAB has been working with the Australian Securities and Investments Commission (ASIC) to rectify the issue.
Details are still emerging but NAB may be on the hook for giving customers excessive credit.
Source: The Sydney Morning Herald