Broker Liability

Tonto Home Loans Australia v Tavares [2011] NSWCA 389

This Court of Appeal decision concerned three cases where the lender, ANZ subsidiary, Origin Mortgage Management Services, used a mortgage originator, Tonto Home Loans, who in turn used a broker, Streetwise. Streetwise conned the borrowers into taking out the loans and it’s principal, Mr Bangaru, absconded with the proceeds. The trial judge set aside the …

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Perpetual Trustee v Milanex [2011] NSWCA 367

A 74 year old man pensioner who spoke little English was hoodwinked into signing a mortgage. The money went to the fraudster and the court set aside the mortgage under the Contracts Review Act. The lender sued the mortgage broker alleging that the broker had verified the borrower’s identity and that the borrower was a …

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RHG Mortgage Corporation v Baira [2011] NSWSC 520

A husband and wife started a joint business. To obtain start up capital they borrowed on their parents’ homes. For several years the business prospered exceedingly well. Then they decided to refurbish the business and to raise the additional capital required they refinanced the loans over their parents’ homes. Some time later the business became …

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Perpetual Trustee v El-Bayeh [2010] NSWSC 1487

Half of the loan was used to discharge a previous mortgage and the other half was paid into an account in the borrower’s name. The borrower claimed his brother had engaged in fraud and taken the over borrowings. The brother claimed the property was held on trust for him and denied the fraud. The lender …

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Perpetual v Onesemo [2010] NSWSC 43

In this case the borrower sought to escape from a mortgage by arguing that it was unjust under the Contracts Review Act. The borrower also cross-claimed against the broker alleging false, fraudulent and misleading conduct by the broker, which included: representing that the borrower earned $74,234, when in fact he earned $46,800 per year; representing …

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Perpetual Trustee Company v Kotevski [2009] NSWSC 954

In this case the borrower, Alexander Kotevski, an unemployed pensioner aged 78 claimed, that Perpetual Trustee’s agent, Good Home Loans Pty Ltd, completed and submitted the loan application to Perpetual, without his authority and without making enquiries as to his ability to repay the loan in accordance with its terms. He also claimed the loan …

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Permanent Trustee Company v O’Donnell [2009] NSWSC 902

This decision encompassed three related cases which were heard together. All three involved a company known as Streetwise Property. Streetwise was a property developer and finance broker. Streetwise conned three couples into mortgaging their homes and investing the money with it: in actuality the money was embezzled. In each case, Streetwise went to Tonto Home …

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CT Money v AFIG Wholesale [2008] NSWSC 1336

In this case CT Money, a mortgage originator and manager, purported to purchase the loan book off DC Corporation Australia, the wholesaler being AFIG Wholesale Pty Ltd. Upon being notified AFIG began to pay DC’s commission direct to CT. CT entered into its own correspondent deed with AFIG and began to write loans. Time went …

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