The corporate regulator will increase scrutiny on mortgage broking commission payments after suing Westpac subsidiary RAMS Home Loans for fraudulent activity, after franchisees wrote home loans using false payslips from fake employers and fudging borrower expenses.
The Australian Securities and Investments Commission has alleged RAMS failed to properly supervise a network of franchisees, allowing some to engage in systemic misconduct over a period of almost four years, in a Federal Court action filed on Wednesday.
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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
