Integrity Focus

In the course of a corruption investigation by the ICAC, it was revealed that a property buyer had allegedly induced a bank not to demand repayment of a mortgage loan of over $8 million granted to her, meeting the owner-occupied requirement, with a loan-to-value (LTV) ratio of 80 per cent by concealing from the bank that the property was leased out. The property buyer was charged with fraud yesterday (October 4).

Wong Hin-ning, 48, insurance agent, faces two counts of fraud, contrary to Section 16A of the Theft Ordinance. She was released on ICAC bail, pending her appearance at the Eastern Magistrates’ Courts tomorrow (October 6) for mention. The prosecution will apply for transferring the case to the District Court for plea.

According to the guidelines issued by the Hong Kong Monetary Authority, banks are required to comply with the LTV ratio requirement on owner-occupied residential mortgage lending. At the material time, China CITIC Bank International Limited (CNCBI) is a participating bank in the mortgage insurance programme of the HKMC Insurance Limited (HKMCI) (the Programme), which provides a mortgage loan with an LTV ratio of up to 80 per cent for a self-used private residential property valued between $8 million and $10 million.

In late February 2020, the defendant purchased a private residential property in Ho Man Tin at $9.98 million on behalf of his son who was abroad. A few days later, she applied for a mortgage loan with an LTV of 80 per cent with CNCBI under the Programme and declared that the property would be occupied by her and her son.

The defendant signed a declaration in the mortgage loan application form that she was under an obligation to notify CNCBI immediately if the property was no longer occupied by her or her son. The bank approved the application and granted a mortgage loan of over $8 million to the defendant in late June 2020.

It is alleged that between August 2020 and June 2022, the property was leased out to two tenants at a monthly rental of $19,000 and $20,500 respectively, but the defendant failed to inform CNCBI of a change in the occupancy status of the property in Ho Man Tin, and with intent to defraud, induced CNCBI not to demand repayment of part or all of the mortgage loan granted to her or impose other conditions, including an increase in the interest rate.

CNCBI and the HKMCI have rendered full assistance to the ICAC during its investigation into the case.