Origination

Pioneer Mortgage Services v Columbus Capital [2015] FCA 1067

A securitisation funder bought a loan book associated with mortgages originally funded by a bank and became subject to the bank’s obligations in its origination deeds. The originator’s employee stole money from borrowers by carrying out fraudulent redraws, which went undetected for 7 years because the originator had no system in place to cross-check redraws …

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Xiao v Perpetual Trustees Victoria [2015] VSCA 124

A husband obtained finance by transferring his home to his wife and applying for the loan in his wife’s name, forging her signature. The trial judge found lender was unable to rely on its mortgage (as it was a forgery) but found that the home was held on trust for the husband and ordered its …

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Citigroup v Middling [2015] NSWSC 221

A borrower on a disability pension was conned by a loan originator to borrow against his home to make an investment that would pay off his remaining mortgage of $15,000 and give him a good return. The originator included false documents in the loan application for $240,000, including a false valuation. The investment was made, …

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Perpetual Trustee v CTC [2015] NSWSC 131

This has been a long running saga. The registered proprietor’s brother forged the mortgage. When the registered proprietor raised the forgery as a defence, the lender cross-claimed against the mortgage orginator, claiming under the indemnity in the mortgage origination deed. The lender’s claim failed against the mortgage originator due to a lack of evidence and …

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Perpetual Trustees v Xiao [2015] VSC 21

A husband wanted to purchase a restaurant but had a bad credit rating so he transferred his home to his wife and then forged her signature on the mortgage to finance his purchase. The loan went into default and the lender claimed possession. The court found that the wife was a pawn in her husband’s …

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Landa v Perpetual Trustees Victoria [2014] NSWCA 393

We have previously reported the trial judge’s decision in this case. A doctor was hoodwinked by a fraudulent mortgage broker. The broker told the borrrower he was going to invest money the doctor had, as well as money he arranged for the doctor to borrow from Perpetual Victoria. Instead, he misappropiated it. The doctor sought declarations …

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NAB v Smith [2014] NSWSC 1605

A naive, simplistic salesman was talked into buying a two year old business where he worked as a salesman for $2 million. He had no inkling of the businesses financials but the bank did and encouraged him. The bank also fell victim to questionable documents emanating from a broker’s office.  The parents of the borrower …

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Perpetual v CTC [2013] NSWCA 58

The mortgage originator CTC was found liable to the funder for breaching its obligations of care under its mortgage origination deed. CTC had submitted a forged loan application and failed to verify the borrower. However owing to some confusion at trial, CTC’s claim that its liability was limited by the proportionate liability provisions under Part …

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Perpetual Trustee Company Ltd v CTC Group [2012] NSWCA 252

CTC (as originator), submitted to Resimac (as manager), a forged application for a loan by Perpetual (as trustee) of $480,000. As required under the mortgage origination deed CTC verified the identity of the applicant, Mr David El-Bayeh. The loan was made and upon default proceedings were commenced for possession of the property. The trial judge …

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