Low-doc Loans

Hoad v GEL Custodians [2014] NSWSC 513

A lender refused to advance further funds when it discovered that the borrowers had substantially overstated their income. The borrowers sued the lender for damages for breach of contract and also misleading and unconscionable conduct. The lender cross-claimed for the amount of the debt on the basis of the borrowers’ misleading conduct in overstating their …

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Androvitsaneas v Members First Broker Network [2013] VSCA 212

A loan consultant contracted to work for a mortgage banking business had been terminated after he misrepresented the income of a borrower (his cousin) in a ‘low doc’ loan application. He sought a declaration that the termination of his Credit Representative Deed was invalid. The trial judge had found against him, finding that the misrepresentation …

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Knezevic v Perpetual Trustees Victoria [2013] NSWCA 199

The borrower argued that the mortgage was “unjust” because it was an “Easy Doc” loan and the lender had not required the borrower to produce any proof of her ability to service the loan, and she did not have the financial capacity to make the repayments required. She argued that the mortgages and loans had …

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Violet Homes Loans v Schmidt [2013] VSCA

An elderly pensioner was conned by a dishonest financial adviser into borrowing to invest in his fraudulent scheme. The mortgage originator/manager was not aware of the dishonesty of the sub-introducer and approved the loan without interviewing the borrower in accordance with its guidelines or making enquiries following the discrepancies between the income of the borrower …

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Provident Capital v Naumovski [2013] NSWSC 40

A husband and wife mortgaged their home for the benefit of their daughter and later refinanced these loans twice. The parents did not receive any of the loan monies and claimed they were the victims of their daughter’s fraud. The lender sued to enforce its mortgage and the borrowers brought a number of defences, including …

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BNY Trust Company v Moore [2012] WASC 255

An elderly husband and wife refinanced a loan on their house, after having gone into default. The mortgage broker acting on the refinance submitted a loan application on their behalf which had been signed by them in blank form while the husband was in hospital and later completed by the mortgage broker, showing a monthly …

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Perpetual Trustee Company v Kotevski [2009] NSWSC 1228

This involved a loan of $224,000 by way of first mortgage over the home unit of a borrower who was 74 years old, could not speak English, and who’s only apparent source of income was an aged persons pension of about $500 per fortnight. The case was interesting because it appears to have involved fraud. …

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Perpetual Trustees Victoria v Kirkbride [2009] NSWSC 377

In this case the borrower defended on the basis of unjustness under the Contracts Review Act. The wife claimed she deferred to the husband and signed the documents without reading. She claimed her understanding was that the mortgage affected their investment properties but not the family home. The lender was accused of not adopting prudent …

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