The low-doc loans crackdown has begun, with ASIC commencing proceedings against a Canberra-based mortgage broker, Tonadale, following allegations of unconscionable, misleading and deceptive conduct.
ASIC started proceedings after investigating the conduct of Tonadale and employee Kelvin Skeers for arranging two low-doc loans for a client in August 2004 and November 2005.
At the time the client was unemployed, had no fixed address and was 20 years old.
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ASIC alleges that Tonadale misrepresented the borrower’s financial position to the lender in the application forms and misrepresented to the borrower who would be included in the borrower’s loan application forms.
Tonadale was ordered to pay $31,831 in compensation to the borrower and pay ASIC’s costs while the matter against Skeers is still before the court.
An ASIC spokesman says it is the first case against a low-doc loan mortgage broker.