The Globe and Mail reports in its Friday, July 8, edition that the Office of the Superintendent of Financial Institutions on Thursday warned the banking sector it needs to do a better job of scrutinizing borrowers for home loans. The Globe's Tim Kiladze writes that across the banking sector, there is a growing acceptance that extra care and targeted rules are necessary -- so long as the same conditions apply to everyone. An unnamed banker says: "None of this is a surprise to the industry. The alarm bells went off last year." A number of the country's biggest banks have privately acknowledged the need to do thorough checks of their own mortgage books, particularly after alternative mortgage lender Home Capital Group suspended nearly four dozen brokers last year on allegations their files contained falsified income documents. An investigation is continuing, but early work found evidence of borrowers who had salaried jobs but falsely inflated incomes that helped them qualify for lower interest rates than they would have otherwise paid. OSFI said it is targeting income verification because it "is aware of incidents where financial institutions have encountered misrepresentation of income and/or employment."