Hayne pain for NAB mortgage fraud
The outcome of National Australia Bank's investigation into allegations of fraudulent loan applications and its introducer program may be made public by the Royal Commission into misconduct in banking at hearings that begin on Tuesday this week.The commissioner, Kenneth Hayne, on Friday published a "reasons for ruling" on an application by NAB for non-publication directions relating to a statement by Anthony Waldron, the bank's executive general manager for broker partnerships.Hayne, in the ruling, drew notice to "Project Winnow", an episode reported at the weekend by the Financial Review as relating to NAB's dismissal, in late 2017, of a score of bankers who had "used incorrect information and documentation to sell about 2300 home loans to customers who may not have been eligible for them."The commission will allow a number of non-publication directions for Waldron's statement in connection with "identifying information of certain third parties … typically as introducers or persons associated with introducers in connection with matters being investigated by NAB," as well as "identifying information of employees of NAB against whom allegations of misconduct have been made."The branches at which these staff worked will also not be published, "so as to avoid identifying them," Hayne ruled. Information "that might identify a whistleblower" will also be shielded from publication.The "NAB Introducer Program and fraudulent loan applications" is one of three case studies with a mortgages theme that will feature in the "Round 1 hearings" of the Royal Commission. These kick off tomorrow morning at the Commonwealth Law Courts in Melbourne.