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EXPLAINED: Massive fine for home loan compliance failures - The Real Truth

A now defunct subsidiary of Westpac, RAMS Financial Group, has been hit with a big fine. (Joel Carrett/AAP PHOTOS)

RAMS Financial Group has been hit with a $20 million fine after admitting widespread compliance failures in the way it arranged home loans.

The Federal Court has ordered the lender, a wholly-owned subsidiary of Australia's oldest bank Westpac, to pay the penalty, finding that it dealt with unlicensed referrers and failed to ensure customers were not disadvantaged by conflicts of interest.

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