Lying for lending

kingstreet wrote: »

As a broker, even if the lender doesn't request bank statements itself, we are expected to check the outgoings to ensure we don't contribute to a fraudulent application - deliberately, or by accident.

So it sounds like a case of i know im lying and happy to take the risk, they (the bank) know im lying and are happy to take the risk lets keep the whole thing shush....? (everyone wins... for now. Liar gets a house, lied to probably makes some decent money that they should have to refuse)

Please note that I am in no way casting any aspersions on yourself or mortgage brokers in general. I'm in fact a huge admirer of the way in which you respond to queries on this board.

But out of interest, how does this still go on then? In practice, is it cost effective for brokers or lenders to comb through the bank/credit card statements line by line to tally the nature and amount of outgoings with what has been said in the application by the borrower?

Or if a visibly pregnant applicant says that she doesn't expect there to be any changes in her circumstances, would a broker bring it up?

Kala

kingstreet wrote: »

As I said, lenders have brokers policing applications for them since MMR. We are not permitted to submit an application unless 100% sure it meets lender criteria and affordability.

We can be called to account and face sanction if found lacking.

The lenders who don't ask brokers for bank statements may do so for direct applicants, so reliance is being placed on us as gatekeeper for introduced business.