Aussie mortgage fraud triggers $80bn class action

Perhaps mortgage control fraud doesn’t pay in the long run, via the AFR:

Lawyers’ representing up to 300,000 litigants are planning an $80 billion action against mortgage lenders, mortgage brokers and financial regulators in a class action that would dwarf previous actions.

…Roger Brown, a former Lloyds of London insurance broker, said he already has about 200,000 borrowers ready to join the action and has $75 million backing from UK and European investors.

“There has been a scam,” he said about mortgage lending to Australian property buyers. “But the train has hit the buffers and there needs to be recompense,” he said.

Put another way, at LF Economics:

Philip Soos continues to dive deep into improving awareness on how to better identify systemic instances of mortgage control frauds. With limited global expertise into this specific matter, it pays to expand and build upon the existing frameworks (especially from Professor William Black) that exist to better identify early instances of systemic misconduct in the mortgage market.

Here is Phil’s gargantuan checklist using the Australia mortgage market as a proxy. And the boxes are well and truly being ticked.

Basically, if you put “Australia” into any decent dictionary it defines it as “mortgage control fraud”.