FSA regulated irresponsible lending & a ccj

ILW

potatoefeet66 wrote: »

So In 2009 specifically on the 3rd of Jan one month prior to the application to port an make a lumpsum reduction of my mortgage balance, what your actually saying is that when the underwriter and the branch advisor conducted a soft search, finding out that i did not meet criteria due to a 5 year old ccj they had no write to continue with any application in keeping with fsa rules.......

I don't think most of you have clue about the business your practicing in..... good job your not surgeons or summin important hey.

Nothing to stop them giving a loan with a CCJ. It is not against FSA rules. What makes you think it is?

potatoefeet66

ilw wrote: »

nothing to stop them giving a loan with a ccj. It is not against fsa rules. What makes you think it is?

fsa mcob 5.4.8 rule
fsa mcob 11.3.1 rule

kingstreet

From the Handbook;-

Illustrations where customer ineligible

MCOB 5.4.8 31/10/2004
A firm must not issue an illustration to a customer for a regulated mortgage contract for which the customer is clearly ineligible on the basis of the information that the firm has obtained from the customer or the mortgage lender's lending criteria.

MCOB 5.4.9 31/10/2004
The purpose of MCOB 5.4.8 R is not to require a firm to ascertain whether a customer is eligible for a particular regulated mortgage contract before providing an illustration. Instead, the purpose is to ensure that the firm takes into account the information it has obtained from the customer before providing an illustration to the customer.

And

Customer's ability to pay

MCOB 11.3.1 06/04/2007
(1) A firm must be able to show that before deciding to enter into, or making a further advance on, a regulated mortgage contract, or home purchase plan, account was taken of the customer's ability to repay.

(2) A mortgage lender must make an adequate record to demonstrate that it has taken account of the customer's ability to repay for each regulated mortgage contract that it enters into and each further advance that it provides on a regulated mortgage contract. The record must be retained for a year from the date at which the regulated mortgage contract is entered into or the further advance is provided.

dunstonh

potatoefeet66 wrote: »

fsa mcob 5.4.8 rule
fsa mcob 11.3.1 rule

Neither of those stop a lender deciding to lend money.

Here is 5.4.8:
A firm must not issue an illustration to a customer for a regulated mortgage contract for which the customer is clearly ineligible on the basis of the information that the firm has obtained from the customer or the mortgage lender's lending criteria.

Here is 11.3.1:
(1) A firm must be able to show that before deciding to enter into, or making a further advance on, a regulated mortgage contract, or home purchase plan, account was taken of the customer's ability to repay.

2) A mortgage lender must make an adequate record to demonstrate that it has taken account of the customer's ability to repay for each regulated mortgage contract that it enters into and each further advance that it provides on a regulated mortgage contract. The record must be retained for a year from the date at which the regulated mortgage contract is entered into or the further advance is provided.

----
5.48 is about issuing illustrations on mortgages you are not able to have. You got the mortgage so you were clearly eligible.
11.3.1 requires the firm to be able to show their reasons for lending. The lender thought you were an honest joe who could repay their debts. They got it wrong as you clearly cant. However, some lending decisions will go wrong but that is life.

You won't find a thing in the FSA handbook that says a lender cannot lend money to someone with a CCJ.

potatoefeet66

dunstonh wrote: »

Neither of those stop a lender deciding to lend money.

Here is 5.4.8:
A firm must not issue an illustration to a customer for a regulated mortgage contract for which the customer is clearly ineligible on the basis of the information that the firm has obtained from the customer or the mortgage lender's lending criteria.

Here is 11.3.1:
(1) A firm must be able to show that before deciding to enter into, or making a further advance on, a regulated mortgage contract, or home purchase plan, account was taken of the customer's ability to repay.

2) A mortgage lender must make an adequate record to demonstrate that it has taken account of the customer's ability to repay for each regulated mortgage contract that it enters into and each further advance that it provides on a regulated mortgage contract. The record must be retained for a year from the date at which the regulated mortgage contract is entered into or the further advance is provided.

----
5.48 is about issuing illustrations on mortgages you are not able to have. You got the mortgage so you were clearly eligible.
11.3.1 requires the firm to be able to show their reasons for lending. The lender thought you were an honest joe who could repay their debts. They got it wrong as you clearly cant. However, some lending decisions will go wrong but that is life.

You won't find a thing in the FSA handbook that says a lender cannot lend money to someone with a CCJ.

Trouble is I'm far to honest and you know absolutely nothing about me.... so we have established that a firm can lend to a customer with a ccj and that it can also decline a customer with a ccj depending on whether or not it is a condition of criteria.

explain i think it was jimmy the wig said ..... unfortunately you must meet all criteria of lender.......So we are not talking about absolutes here are we..... rule can be altered if there is profit to be made Yes

dunstonh

Trouble is I'm far to honest and you know absolutely nothing about me.... so we have established that a firm can lend to a customer with a ccj and that it can also decline a customer with a ccj depending on whether or not it is a condition of criteria.

explain i think it was jimmy the wig said ..... unfortunately you must meet all criteria of lender.......So we are not talking about absolutes here are we..... rule can be altered if there is profit to be made Yes

Lending criteria is up to the lender. Most lenders have a defined criteria which they can breach if they feel there is justification for doing so. They may feel one person with a CCJ has circumstances which show positives in other areas. Another person with a CCJ may have no positives. Anything outside of their normal criteria is put to someone with a discretion to lend to make a decision.

holly_hobby

OP - the lender can choose to have whatever criteria they want and WILL vary from lender to lender, BUT as long as they can demonstrate that they assessed the mortgagors status, capacity and long term affordability to repay the debt they are covered FSA and responsible lending wise (in the case of possession orders) - there is no further arguement on it.

I remember quite a few niche adverse lenders, who considered CCJs and ignored defaults over a certain age (satisfied or not).

Affordabilty was apparantely assessed as self cert and on YOUR disclosed income level - if you were a little fruty with it, thats not their issue its yours ... and its a fraudulent one at that.

It appears that you are hoping to have your mge debt wiped out becuase of what you believe to be irresponsible lending (which it wasn't) ... let me tell you now .. you've no chance, but every change of landing yourself in court if the lender pursues the fraudulent mge application you submitted - think on.

To say that the profs whom have assisted here don't know the FSA handbook or their profession, simply becuase they don't agree with your convoluted plan of dis-engagement from your lender - simply breathtaking and wholly offensive.

The lender has not broken any FSA regs, and you still owe the money.

Hope this helps

Holly

holly_hobby

dunstonh wrote: »

Lending criteria is up to the lender. Most lenders have a defined criteria which they can breach if they feel there is justification for doing so. They may feel one person with a CCJ has circumstances which show positives in other areas. Another person with a CCJ may have no positives. Anything outside of their normal criteria is put to someone with a discretion to lend to make a decision.

Yep Duns. their business model will define what is absoutely not acceptable regardless of circs (legal say in the case of an undischarged bankrupt, or risk based), anything up to that will be a straight forward criteria pass, OR an individual mandate decision of the UW (snr UW where appropriate) dependant on percieved exposure with relation to the individual and issue.

Holly

Dave_Ham

holly_hobby wrote: »

Yep Duns. their business model will define what is absoutely not acceptable regardless of circs (legal say in the case of an undischarged bankrupt, or risk based), anything up to that will be a straight forward criteria pass, OR an individual mandate decision of the UW (snr UW where appropriate) dependant on percieved exposure with relation to the individual and issue.

Holly

Holly/Dunston - do not get too worked up on this thread, think you must have missed the other 200+ post threads where there was another rant about the same lender..

Just like the Star Wars model, the OP has now gone back further than where the initial story started..

holly_hobby

Yep Dave. from reading this thead I can see there has been previous threads apparently on the same subject, each one revealling more than the last ....

I think, having hopefully defended the professional advice he has already been kindly given here, I'll now sit this one out

H x