It follows the completion of an extensive review by NAB which identified around 2,300 home loans since 2013 that may have been submitted without accurate customer information and/or documentation, or correct information in relation to NAB’s Introducer Program.
NAB first became aware of the matter in October 2015, and advised ASIC in December 2015 after an initial high-level review. Since then, NAB has provided regular updates to ASIC on the progress of its investigation.
NAB chief customer officer of consumer banking and wealth Andrew Hagger said: “What occurred was unacceptable. We have investigated this matter thoroughly, and, as we have always said, whenever we find issues we will investigate them, fix them, and hold people to account – and we did.”
As a result of NAB’s review, 20 bankers in New South Wales and Victoria had their employments terminated, or are no longer employed by NAB, and an additional 32 bankers had consequences applied including the reduction of remuneration.
NAB has commenced writing to the around 2,300 customers – many of whom live overseas – asking them to participate in a detailed review of their loan, which may include verification of documents submitted at the time of their home loan application. Affected customers may be offered compensation as appropriate.
NAB has engaged with Australian Securities and Investments Commission (ASIC) to ensure the remediation program provides fair outcomes for customers. The remediation program has been designed with reference to the methodology applied by the Financial Ombudsman Service, and with NAB’s standard approach to compensating customers.
NAB will engage an independent expert to undertake regular audits of the remediation program, and will update ASIC every two months on its progress.
“I want to assure all of our customers that we have improved our systems, processes and programs as a result of what occurred here,” Hagger said.
This includes changes to NAB’s Introducer Program, including enhanced governance and eligibility criteria. Customers who receive letters to participate in the remediation program are encouraged to contact NAB on the phone number provided to them.
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Major Australian bank NAB has commenced a remediation program for some of its customers, after a review identified home loans may not have been established in accordance with NAB’s policies.