The Hayne royal commission may have moved onto small business loans but the fallout from poor mortgage broker behaviour continues, propelled by an ABC TV report of a broker filling in false loan applications for off-the-plan properties.The ABC's Specialist Reporting Team alleged in the 7.30 Report that real estate investment company Money Choice and its director Matt George exaggerated salaries, inflated savings and super, and included share portfolios and luxury cars that people did not own.In May 2013 ASIC banned George for eight years from engaging in credit activities and for three years from providing financial services. The credit licence of Money Choice Pty Ltd was cancelled. These actions were taken after an ASIC investigation found failures to comply with credit laws, responsible lending shortfalls and instances of unlicensed self-managed superannuation fund advice.In a statement, ASIC said it did not believe there were systemic responsible-lending issues at any of the banks based on the evidence it reviewed.Mr George declined an interview request and did not respond to questions sent to him in writing ahead of publication.According to the ABC website, some of the banks and non-bank originators that loaned to Money Choice clients were:•    Commonwealth Bank and Bankwest •    Westpac, Bank of Melbourne and St George•    ANZ•    NAB Advantedge•    Suncorp•    Liberty Finance•    Macquarie•    ColonialIn a media release, ASIC stated that between 1 July 2010 and 23 August 2012, Money Choice brokered residential investment loans to more than 40 clients who had purchased a unit on Queensland's Sunshine Coast. ASIC's investigation found in brokering some of the loans, Money Choice and Mr George had:•    engaged in unlicensed lending•    been involved in organising loans from the unlicensed developer•    given misleading information to lenders•    failed to meet responsible lending conduct obligations, including failing to verify investor's financial situation, and•    failed to have adequate arrangements in place to ensure clients were not disadvantaged by conflicts of interests that arose regarding commission payments.Interestingly, the cases cited by ABC that were aired last night date back to 2013 and earlier, with one common theme: people of low to middle incomes were encouraged to mortgage properties so as to buy additional real estate, but all ended up in severe debt.Many were homeless, or living in greatly reduced accommodation, having had to sell everything to repay debt.Former ASIC lawyer James Wheeldon, who appeared on camera, said under consumer credit law banks could not hide behind a mortgage broker."You clearly have people who were sold loans that they weren't able to satisfy, and this has caused immense hardship for a number of people," he said."Banks cannot discharge their responsible lending obligations by saying a mortgage broker did it and therefore we are not responsible."The activities of Money Choice were being highlighted well before ASIC took action. For instance, back in mid-2012, consumer advocate, Denise Brailey, accused Matt George of pushing people into overpriced properties "... and every property looks like being $100,000 over-valued.  How did that happen?"  She said there were over 60 victims in WA alone - and