Perth mortgage broker banned

A Perth based mortgage broker has been permantely banned from practising after he falsified a letter stating finance approval had been provided for a client, the Australian Securities and Investment Commission announced today.

Mr Eric Ying Ching Chu was formerly employed by Mortgage Specialists as a trustee for the Janet Smith Family Trust.

An ASIC investigation found that after falsifying the letter Mr Chu then forwarded it to a settlement agent so that the Commonwealth Bank would issue a loan of $256,000.

The ASIC said that they had banned Mr Chu on the basis that he was not a fit and proper person to engage in credit activities.

ASIC's Deputy Chairman Peter Kell said that ASIC takes the role of gatekeepers seriously.

"People who do not take their obligations seriously will be removed from the industry," he said.

Mr Chu has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.