Bank accepted mortgage application from unauthorised broker

Occident

Northern Rock accepted a mortgage application from an unauthorised broker and gave a friend a mortgage. What redress does my friend have with Northern Rock?

TrickyDicky101

Banks do that all the time when they take applications from the public!

I have no idea if there will be some regulation which will give your friend redress against NR. Perhaps you could explain why they should get compensation or such?

_Andy_

Occident wrote: »

Northern Rock accepted a mortgage application from an unauthorised broker and gave a friend a mortgage. What redress does my friend have with Northern Rock?

Why would he have any 'redress'? He wanted a mortgage, he has now got a mortgage.

opinions4u

What redress does my friend have with Northern Rock?

None whatsoever.

DVardysShadow

Occident wrote: »

What redress does my friend have with Northern Rock?

What loss has he suffered? Does he want compo for being given an NR mortgage?

dunstonh

Northern Rock accepted a mortgage application from an unauthorised broker and gave a friend a mortgage. What redress does my friend have with Northern Rock?

None whatsoever.

An application arriving in the post that has been filled out by an unauthorised individual doesnt mean a thing. An application filled out by a friend is allowed. Just as any person can fill a mortgage application in. There is no legal or regulatory requirement for an application to go through an authorised firm (note that mortgage advisers are not authorised individually like investment advisers. The firm is)

Occident

Thank you all for your comments. The firm was not authorised and the broker was not a friend of my friend - he was an absolute conman. Northern Rock do not have a copy of the application form and on their intermediary application forms the FSA number of the broker must be authenticated by Northern Rock or a mortgage cannot be approved. My friend wants compensation because she was mis-sold the mortgage by the broker (dealt with on another thread). She cannot pursue the broker because he wasn't authorised. Under the Finance and Marketing Act 2000 brokers who apply for mortgages must be authorised or the agreement cannot be enforced and my friend could apply to a court for recission. I just wanted to check that information from your experience. She was a first time buyer who knew nothing about mortgages and got the Together package which was totally unsuitable for her. She didn't even get a Key Facts document or any other paper work prior to the Offer of Loan.

Thrugelmir

Occident wrote: »

She was a first time buyer who knew nothing about mortgages and got the Together package which was totally unsuitable for her.

This has been covered in your previous thread.

dunstonh

. Northern Rock do not have a copy of the application form and on their intermediary application forms the FSA number of the broker must be authenticated by Northern Rock or a mortgage cannot be approved.

No. The lack of FSA number means they wont pay the individual. They can accept applications and deal with them with the borrower.

My friend wants compensation because she was mis-sold the mortgage by the broker (dealt with on another thread).

As the person was not a broker and not regulated by the FSA then there is no consumer protection. Unless the person was paid by NR, then the person is not responsible for anything as no commercial arrangement existed.

Under the Finance and Marketing Act 2000 brokers who apply for mortgages must be authorised or the agreement cannot be enforced and my friend could apply to a court for recission.

Good luck with that one. The agreement is between NR and the borrower.

She was a first time buyer who knew nothing about mortgages and got the Together package which was totally unsuitable for her.

She was an adult and needs to take responsibility for her decisions. Buying a mortgage is not risk free.

She didn't even get a Key Facts document or any other paper work prior to the Offer of Loan.

Assuming it is post 2004, then she is likely to be telling porkies there. Not getting one KFI, whilst unlikely is possible. Not getting another that is sent directly by NR with the contract is unlikely.

This just sounds like a desperate attempt to get compo and nothing said so far suggests any wrongdoing unless this unregulated individual was paid by NR (but without an FSA number there will be no agency and NR cannot pay them).

Occident

Thank you again. I can assure you my friend is not a liar - she did not get a KFI from either the broker or Northern Rock and she has a witness to that. The broker did receive a fee from Northern Rock as well as fee from my friend and he did not tell her about the latter until everything was completed. She is not desperate for compensation but nothing that should have been done was done and like everyone who is mis-sold a mortgage she is entitled to make a claim

Northern Rock has an Intermediary Registration Form that all brokers must complete. My friend asked in her SAR for the broker's FSA number. They cannot give her it. She also asked for a copy of the application form - she only got the back page. So they have two sources they should have been able to extract the FSA number from and they cannot do so. In two letters they gave her a selection of wrong numbers!

This is from the application form online:
You should be aware that we are unable to process applications from Intermediaries who are not authorised by the Financial Services
Authority to carry out mortgage business.
The following must be fully completed to help us to comply with our obligations under the Financial Services Authority’s (FSA’s) Mortgage
Conduct of Business (MCOB) rules.

followed by boxes for details of the broker/firm/FSA number and confirmation by a member of Northern Rock staff that the information has been authenticated.

Can you please explain to me what the comback is of NR paying an unauthorised broker?

FraudBuster

Round and round we go.