ASIC has banned a third former National Australia Bank employee over mortgage fraud activities that flourished in the bank's western Sydney branches for years.Details of the scandal, which plagued NAB's mortgage introducer program since the 2000s, were revealed at the early hearings of the Hayne Royal Commission in March.The commission heard evidence from the bank and ASIC that branch staff and accredited introducers fabricated loan documents of mortgage applicants so they could be paid bonuses and commissions from the bank.NAB told ASIC in 2017 that around 2300 home loans may have been submitted with inaccurate information under the bank's introducer program.An ASIC investigation of the matters raised by the bank uncovered a string of fraudulent practices across NAB's branch network in Sydney.ASIC yesterday said it had imposed a seven-year ban on former branch manager Rabih Awad, from engaging in credit activities and providing financial services.ASIC found that Awad recklessly gave NAB false and misleading documents in loan applications that were lodged with the bank.Awad gave the bank false payslips, letters of employment and entered false referee details in the bank's lending systems for a raft of home loan applications.Most of the false information submitted by Awad was obtained from a real estate agent who had been registered as a mortgage introducer for the bank.The ban imposed on Awad follows the permanent banning last week of two other former NAB staff, Danny Merheb and Samar Merjan, who also worked in the bank's western Sydney network.ASIC found that Merheb gave the bank false payslips and statutory declarations in relation to home loan applications.Merjan knowingly gave the bank false letters of employment relating to customers who applied for personal loans and credit cards.The regulator also found that Merjan was twice offered cash by a third party to get loan applications processed.While ASIC's investigation into loan fraud at the bank could result in the banning of other former NAB staff, the regulator is also expected to report findings on why the bank's senior management took years to notify ASIC of the problems that plagued its introducer program for more than a decade.