Should Mortgage Fraud be Legal or Illegal?

Generali

Should Mortgage Fraud be Legal or Illegal?

paddedjohn

What a stupid question! How can fraud be legal????

Generali

Iraq

There seems to be a school of thought that the FSA checking up on mortgage fraud is causing problems in the housing market or at least the mortgage market.

Fraud is 'gaining pecuniary advantage by deception' I believe (I'm not a lawyer). It would be possible to frame a law to state that gaining a mortgage by deception whilst being fraud is no longer a criminal act.

For example:

Conrad wrote: »

There's a new reason why mortgages are falling; Accountants have been advised the Inaland Revenue is checking figures given in mortgage apps at random. In the past a lot of Accountants were fairly flexible when it came to confirming income levels (for example backdating to remove temporarily certain business expenses so as to inflate income).

I keep saying this and soon some of you might actualy listen - regulation is the main killer of the mortgage market lately.

PS There are no stupid questions, only stupid answers.

Generali

Iraq

PS Conrad - I'm not trying to pick on you, just picking up on an interesting point you've made.

1984ReturnsForReal_2

Is this a trick question in an attempt to incriminate myself?


Anyways.


The revenue are only checking "random" (yeah right, it will be targeted) applications to generate more taxation nothing to do with mortgage fraud.

Dave101t

Iraq

i also think benefit cheating should be illegal, as should murder, rape and robbery, but what do i know?

neverdespairgirl

Mortgage Fraud Should be Illegal

Generali wrote: »

PS There are no stupid questions, only stupid answers.

I'm not sure that's true, there are lots of very stupid questions out there.

1984ReturnsForReal_2

neverdespairgirl wrote: »

I'm not sure that's true, there are lots of very stupid questions out there.

How did a fool and his money get together?

Blacklight

Fraudulent in respect of the terms on which the offer was based? Yes.

How about we change the terms of the offer then? Who says there should be an income multiplier? That's no more a guide in today's world than how many shares you have in BP.

Lending should be based on ability to pay back the loan. Nothing more. Your personal circumstances should be taken into account, all outgoings, dependents, likelihood of promotion/redundancy, interest rate rises.

RenovationMan

Mortgage Fraud Should be Legal

Whenever I'm driving and a police car is behind me, I start driving with maximum caution, slowing everyone down. No doubt the threat of spending weeks in a quagmire of paperwork as the result of an IR audit is making sure that these companies dot the i's and cross the t's and resutling in a log jam of paperwork.

Its not so much that they are doing anything wrong, or not performing due diligence it might just be that they are being overly cautious because of the authorities looking over their shoulders.

1984ReturnsForReal_2

Blacklight wrote: »

Fraudulent in respect of the terms on which the offer was based? Yes.

How about we change the terms of the offer then? Who says there should be an income multiplier? That's no more a guide in today's world than how many shares you have in BP.

Lending should be based on ability to pay back the loan. Nothing more. Your personal circumstances should be taken into account, all outgoings, dependents, likelihood of promotion/redundancy, interest rate rises.

This is about self-employment & different revenue streams which are not all taxable at the same rates & avoided for as much as possible.

Hence the reference to the accountant whose job it is to make the bottom line as small as possible for the revenue & as large as possible for the mortgage company.


Its not really applicable to people who are in a position to take promotion/redundancy.

This applies to people who often show an income of £5k but end up with £50k in the bank.