Fraudulent Mortgage Broker

S8NDS

:mad: Hi this is my 1st post....need some advice!

My case is going through the FSA at the moment but I will bring you up to speed. My boyfriend took out a mortgage in 2005 using a broker before we got together. He hates paperwork so never bothered questioning anything. Anyway I was looking through his paperwork and i noticed the mortgage broker stated that he had a CCJ, hence his mortage is with Kensington (app only people with real bad credit ratings take out mortages with this company)

I questioned my boyfriend who states he has never had a CCJ but here is the even more dodgy part....

We have found paperwork where the mortage broker first approached GMAC stating my boyfriend had a CCJ and a Deafault in 2004? This mortgage lender declined my boyfriend and then they secured a mortage for him with Kensington. It was only when we approached the FSA did the broker then suddenly send a copy of a letter suppposedly signed by my husband stating that he now had a CCJ in 1999 with Barclaycard.

Barclaycard have written to confirm he has had no such CCJ and I am still to forward this information on to the FSA. Very suspcious. GMAC and Kensington are both lenders through Optoma. Optoma ia apparently an intermediatory between lender and broker.

My question is can anyone tell me who tells optoma about the state of an individuals credit file? Is it the broker or do optoma do their own checks?

Many thanks
:beer:

Dan_1976

Anybody with a consumer credit licence can credit check and subscribe to the software.

Optoma are packagers and will do a credit check. Its still down to the broker to justify his/her advice, however the packager has to give research and if they have research showing xyz results with a CCJ that they have not found then I think both parties are liable.

I am surprised the mortgage went through with Kensington on that type of deal, are you sure there was no other reasons that he picked that lender?

HelpWhereIcan

Optoma will have done their own creduit search as Dan says.

While I would agree that Kensington are a surprising lender to be used in 2005 for someone with no adverse (they later went into prime deals and were offering some very competitve rates) I am concerned that he did not pass score with GMAC.

Not getting through with GMAC is not a great sign for you bf's contention that he did not have any CCJs or defaults at that time.

GMAC offered a prime range up to 95% and could be quite forgiving of minor adverse on that scheme and I would expect that they would be ok with a CCJ from 1999 in 2005 so should have been ok with someone with no adverse. They also had a near prime range that would often compete on rate terms with prime deals for those with little bits of minor adverse.

Your bf may be getting confused by the various terms being used and may be unaware of exactly what was recorded.

Did he need to self certify his income? Kensington at the time were just about the only lender that did 'day 1 self certification' ie they would accept self cert from someone who had only been self employed for one day whereas most other would insist on a minimum 12 months self employment. Had your bf only just gone self employed?

Before you submit your latest find to the FSA it would be a good idea to get a copy of your bf's credit file (using something like the free trial on www.creditexpert.co.uk) just to make sure that you have all the pertinent information to back up your case.

Use the address history etc that the broker did to ensure you get the same information they did. Adverse information from 2004 will still show up so you should be able to see the default.

The CCJ will be harder to get to the bottom of and I would normally suggest a Data Subject Access request under the DPA but Optoma as they were then no longer exist (folded last year) so you may have to apply to Kensington for a copy of their file as it should include a copy of the search.

sophiak

My husband was discharged bankrupt in 2003, we had to remortgage to pay off official receiver. We went through a broker in 2004. Even with my husbands history of bankruptcy we had no problem getting a mortgage with GMAC so I do not think that Kensington were the only ones who done mortgages at that time.

We also did a self-cert and he didn't even have any accounts.

Robert_Sterling_3

S8NDS wrote: »

:mad: My boyfriend took out a mortgage in 2005 using a broker before we got together. He hates paperwork so never bothered questioning anything. :beer:

Not a good approach in my opinion.

Good luck trying to pick up the pieces.

S8NDS

thanks to Dan_1976 and HelpWhereIcan....
I have a copy of his credit file from November 2005 and there is no sign of a CCJ or default. His current credit file shows no sign.

To GMAC it was stated in the Key Facts Illustration on 14/2/2005 that he had a CCJ and default both satisified in 2004. If they knew that he had a CCJ and Default satisified in 2004 then it must show up in his Novemeber 2005 credit file? The only way it would not show up was if they had both been satisified witihin a month....but if they had then they would not have known about it in 2005! The Registry Trust in London do not have a CCJ satisifed or unsatisified on their register.

All this info was sent to the FSA last year. The Broker replied stating that GMAC declined the application due to bad rating and that his current mortgage lender was seen as an adverse lender. He was with Birmingham Midshires at the time before Kensington. At that time he had missed 2 mortgage payments with Birmingham Midshires and he was behind on a few payments on a car loan but there was no defaults or CCJs. He wanted to remortgage to release money to pay back this car loan and refurbish his house.

The key facts illustration (KFI) was dated 14/2/2005 and in his evidence the broker states on the 23/2/2005 GMAC got back to him stating that they would not lend.....hence he went through Optoma again and this time Kensinginton came up. But rather than substantiate the original CCj and default the broker pulls out another CCJ from 1999 for barclaycard!

This was a lined piece of paper titled "to Optoma Broker Solutions" and handwritten on it was a statement supposedly from my boyfriend stating why he wants to remortgage. The statement reads.........

10/3/2005 To Optoma Broker Solutions.

All our current mortgage payments are up to date. Previous missed payments of £372 for Nov 2004 and January 2005 were overlooked due to other loan commitments we have. Hence this is the reason we would now like to consolidate the maximum we can.

The CCJ for £577 date 11/99 was because of missed payment with Barclaycard this has since been paid and settled.

Signed by him and his then wife.

The handwriting does not match his nor his wifes. His signature looks realistic but his wifes is not.

We dont have the original but a photocopy of it which was passed on to us from the FSA. It looks real dodgy and my boyfriend is adament that he did not sign or ever see this piece of paper before. Also his wifes credit file was and still is clean.

Also the broker has not substantiated the original year 2004 CCJ and 2004 Default found in the GMAC KFI instead he is now suggesting it was from 11/1999 with Barclaycard??? This info was not in the Gmac KFI it appeared later when he approached Optoma for kensington.

And yes HelpWhereIcan looking through the paperwork supplied now by the broker it states on both the GMAC and Kensington suitability letters that my boyfriend wanted to 'self certify' the income. Both him and his wife were working in the same place as they do now so why would they self certify? I will get him to contact Kensington to see if they have a copy of the search on their files as suggested .

Many thanks

S8NDS

Thanks sophiak thats interesting to know..........

FraudBuster

As you are already dealing with the FSA, just some information:

http://www.fsa.gov.uk/smallfirms/your_firm_type/mortgage/fraud/index.shtml

dunstonh

The handwriting does not match his nor his wifes. His signature looks realistic but his wifes is not.

Doesnt have to be his. The broker may have written it for him to sign. That often happens. Especially on home visits or where you dont have access to a printer. Also, not all advisers are good with computers and still to this day do things by hand.

We dont have the original

You never will. There is no requirement to supply the original and there is no requirement to keep the original. Scanned copies are fine.

my boyfriend is adament that he did not sign or ever see this piece of paper before.

You also said "He hates paperwork so never bothered questioning anything". He is clearly not reliable in saying what he did or did not sign.

Both him and his wife were working in the same place as they do now so why would they self certify?

Had they not been there long? Was your boyfriend looking for more lending than their official income could not achieve? (fraudulent application which implicates both adviser and applicant).

Can I ask, what are you trying to achieve with all this?

If the mortgage broker has done wrong then fair enough but at the moment it does appear there are inconsistencies in the data but what ever way you look at it, your boyfriend does not appear to be low risk lending.

If you have reported it to the FSA and they are investigating it then the broker will have to respond to them. There will no longer be any reason for the broker to respond to you other than to say it is being investigated.

S8NDS

thanks dunstonh.....

All the correspondance received from the broker has been sent through the FSA. My point is that if the broker had not made up the CCJ's then my boyfriend could of secured a more affordable mortgage deal. At one point last year he was paying over near £700 interest only on a £79,000 mortgage with kensington. Its now down to £570 since interest rate cuts. Kensington follow Libor so they dont reduce their interests in line with bank of england so he is still paying loads and thats interest only.

Yes he doesnt bother too much with paperwork as he relied on his wife at that point but even then if he has been ignorant then the broker should not of used him to make more money..... according to the paperwork the broker made £806 more with Kensington in commission than he would have done with Gmac.

S8NDS

Also if a company goes into administration where do all the paperwork and files go? do they get destroyed? Optoma went into administration last year so where has all their client information gone?

Thanks guys