Brokerage refutes fraud claim

MORTGAGE Choice has denied that its remuneration structure has encouraged some franchisees to commit fraud in order to meet performance targets.

Shares in the home loan broker slumped this week after media reports that franchisees were considering legal action over a harsh remuneration structure that has led some to cut corners, write inflated loans and even commit fraud.

Mortgage Choice yesterday said it “strongly refutes” the allegations, and that franchisees were required to comply with robust compliance processes and credit policy controls that safeguarded against misconduct.