Lie-to-Buy Mortgage Brokers & the FSA.

FraudBuster

FSA/PN/055/2008
10 June 2008
The Financial Services Authority (FSA) has fined Andrew Jeffreys (trading as Chepstow Financial Services) £10,500 for failures in the sales process he used for self certification mortgages.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2008/055.shtml

9 June 2008
The Financial Services Authority (FSA) has banned three South London brokers for submitting false mortgage applications to lenders backed by faked documents.

http://www.fsa.gov.uk/pages/Doing/small_firms/mortgage/library/ban_brokers.shtml

9 June 2008
The Financial Services Authority (FSA) has banned Belfast mortgage broker Gerard McStravick for being knowingly involved in submitting false mortgage applications to lenders.

http://www.fsa.gov.uk/pages/Doing/small_firms/mortgage/library/ban_fraud.shtml

_Andy_

Sad that muppets like these give brokers a bad name.

homer_j_3

Isn't it just.

The first case quoted is bad and I see it was turning a blind eye to help achieve the financial goals. I know a few brokers who use a similar sheet to try and absolve themselves in the way this broker did. I bet their backsides are squinting now a little.

The last 2 are actually sickening to the degree that someone would go out of their way to defraud in this manner.

Its one thing saying, yeah I can believe that you are a taxi driver earning 25k and taking their word for it but to say, don't worry, we will get you a payslip or set of accounts for this mortgage.

Its a small minority again..

Conrad

We must treat customers fairly. Lets tell them they cant get the mortgage, even though they can afford the equivalent rent, so they must pay rent and make a middle class landlord richer and cause the wealth divide that causes liberals so much anxt, to grow ever wider and thus entrench life chance differentials even further.

Dan_Collins_2

Had ROS in this morning. They will tell you to go self cert if it does not fit standard or fastrack. They use the same income amount but bigger multiples. Emp and Self Emp, If that aint open to abuse!?!?!

luckyfool

Conrad wrote: »

We must treat customers fairly. Lets tell them they cant get the mortgage, even though they can afford the equivalent rent, so they must pay rent and make a middle class landlord richer and cause the wealth divide that causes liberals so much anxt, to grow ever wider and thus entrench life chance differentials even further.

Conrad - In the 1st, and potentially most sympathetic of the above cases, it appears the broker did not adequately document affordability with clients, so I'm not sure that your point would stand there.

With the other two which are straight up mortgage fraud with dodgy payslips and ID jobs then I don't think there can be any defending of the brokers involved, who are clearly as bent as a two bob note.

beer_tins

Too true. There are mortgages available for the self employed. There is no reason to defraud lenders. Nothing to do with not allowing working class people onto the ladder.

luckyfool

Dan_Collins wrote: »

Had ROS in this morning. They will tell you to go self cert if it does not fit standard or fastrack. They use the same income amount but bigger multiples. Emp and Self Emp, If that aint open to abuse!?!?!

Who is ROS? Royal Bank of Scotland? Bank of Scotland?

I assume Bank of Scotland as RBS don't have Self Cert products.

Conrad

Not so beinerts, there are very many categories of people that can afford a mortgage/home but find it impossible to borrow even under self cert.

Some examples;

Single Mum quite happily paying the existing mortgage but unable to transfer to her single name even though Dad Husband left years ago and makes no contribution.

Agency worker on various agents books, paying rent quite happily for years 9yes I know these can sometimes be accepted, but not always) yet unable to borrow a mortgage with similar payments.


There are masses of people denied home ownership. This Government bought in the Childrens savings bond on the basis that asset ownership is a key determinant of life outcomes.

Of course we should not condone dogy dealing but I have sympathy for those locked of home ownership despite having the measn to pay.

Those most likely to be socially excluded in this mannerare from the lower socio economic groups.

I assure you there are plenty of people that couldnt afford a mortgage on paper that have gone on to manage perfectly well. WOULD YOU HAVE DENIED THEM THIER CHANCE ON THE SAY SO OF FSA RULES?

minimike2

My answer is yes, if it meant being able to carry on trading.

We all know you sail close to the wind, Conrad, but whats the point in doing something that could put you out of business?

Maybe we dont all agree with some of the rules, but at the end of the day the rules are not there to be broken. Unless you like losing your livelyhood.

homer_j_3

I accept what you say conrad but the fact remains that rent may not be as volatile as interest rates and that if the affordability is there and you can demonstrate that through proof of rent payments and the income which pays this, I do not see why there would be an issue in the first place as you could abide by the rules?

IF there are any fluctuations in personal circumstances which then make the home unaffordable, then that person has an asset to dispose of where as a tenant the repercussions are less financially.

I am not trying to argue that there may be situations where people can afford but don't fit lenders criteria but I can't imagine the majority of these cases being those unique ones.