The Finance Brokers Association of Australia (FBAA) has called for a firm, system-wide response to mortgage fraud while warning against painting brokers as the sole culprits.
Interim CEO Peter White (pictured) said the association supports any initiative that reduces fraud risk and prosecutes those who breach the rules.
“Our industry is not immune to bad actors, but equally we must not accept any attempt to tarnish the overall reputation of brokers who are overwhelmingly of excellent character and go above and beyond to serve our clients and support lenders with integrity,” White said.
He noted that suspected cases are often linked to organised criminal activity, arguing that law enforcement and regulators must focus on those networks rather than only individual brokers. FBAA has committed to engaging with any investigation and to reviewing what more it can do as a peak body once more data is available.
The warning comes as artificial intelligence is making mortgage fraud ‘faster, more convincing and much harder to detect’, with AI‑generated documents, voice and video deepfakes, and malicious meeting links rapidly accelerating scams and turning brokers into prime targets – reinforcing calls for brokers to pressure-test client stories, strengthen verification, and treat themselves as the first line of defence rather than relying solely on documents.
White stressed that lenders also need to take responsibility, particularly around referral and introducer programs that have long drawn scrutiny from inquiries such as the Sedgwick review and the Hayne royal commission.
“It is accepted that referral and introducer programs can be misused, and now they should be eliminated,” he said, questioning why some bank branches can approve applications that brokers have already declined.
White backed an industry-wide response to emerging fraud risks, but said it must include banks, regulators, and other intermediaries, not just brokers.
“The finance broking sector has proven that we are prepared to work in the interests of the industry as a whole, even when it may adversely affect us,” the FBAA leader said. “If others are also willing to make the tough decisions – and time will tell – we can combat the problem together.”
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