A National Australia Bank executive has admitted the bank breached responsible lending laws through its Introducer Program, which saw business people, including a gym owner and a tailor, refer customers to the bank for loans in return for commissions.
Banking royal commission heard four introducers were responsible for referring $139 million in loans
Last year NAB sacked 20 bank staff for fraudulent home lending involving the Introducer program
Some customers were forced into financial stress due to unsuitable home loans
NAB executive general manager of broker partnerships, Anthony Waldron, told the banking royal commission the gym owner was one of the highest volume introducers responsible for referring customers to the bank, even though the profession was not accepted as part of the program.
Senior counsel assisting the commission, Rowena Orr QC, told the commission $3.6 million out of the more than $139 million in loans written by the most high-volume introducers were in severe arrears.