Lie-to-Buy Mortgage Brokers & the FSA.

FraudBuster

FSA bans directors of mortgage firm for failings on financial crime prevention

FSA/PN/049/2009
8 April 2009
The Financial Services Authority (FSA) has banned Dorset mortgage brokers Peter and James Dean for failing to prevent their firm from being used to perpetrate financial crime and for other serious regulatory failures. Peter Dean has also been fined £17,500.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/049.shtml

FraudBuster

FSA bans and fines mortgage broker £100,000 for fraud

FSA/PN/052/2009
16 April 2009
The Financial Services Authority (FSA) has banned a South London mortgage broker and fined him £100,000 for his knowing involvement in the submission of false mortgage applications.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/052.shtml

naijapower

Are the lenders completely innocent of all these?

naijapower

How about banning some lenders for a change. Why does it take FSA to detect all this. Some lenders knowingly passed some of these application out of greed and by making their criteria so easy and silly e.g self cert no checks; Day 1 self employed; Accept basic accounting reference ete etc

ninky_2

treliac wrote: »

The employment market has changed radically in recent years. So what's the answer for people who rely on a succession of short-term contracts. Will they not be able to get mortgages? It would exclude a lot of perfectly solvent individuals.

you can still get a mortgage. all you have to do is show three years of your declared taxable income (i.e. what inland revenue have taxed you on). this is exactly what i did. tbh if you don't have three years of declared self-employed income you shouldn't be lent to imho. if you have been overminimizing your income for tax purposes then you also shouldn't be allowed to use that undeclared income to borrow.

i think a ban on buy to let mortgages would help keep property prices down, thereby meaning first time buyers would need lower income multiples. far better than relaxing lending criteria which just means property prices get ever more ridiculous and rents get ever higher with them.

i also think there should be as strict criteria for rent affordability as there are for mortgages. this would mean landlords wouldn't be able to charge such ridiculously high rents. whatever is considered affordable in terms of monthly mortgage payment is also the maximum of what shoudl be considered affordable in monthly rent payment.

koexelek

naijapower wrote: »

How about banning some lenders for a change. Why does it take FSA to detect all this. Some lenders knowingly passed some of these application out of greed and by making their criteria so easy and silly e.g self cert no checks; Day 1 self employed; Accept basic accounting reference ete etc

Agreed. Some lenders actively encouraged brokers to commit fraud.

naijapower

koexelek wrote: »

Agreed. Some lenders actively encouraged brokers to commit fraud.

Thanks. I honestly dont see why they should get away scott free and then brokers are now made the scape goats.
I dont wish to name names but i am close to the Industry and am fully aware of instances where some BDMs have helped pushed thru dodgy cases. Now the Broker is isolated for punishment alone....Not fair

koexelek

naijapower wrote: »

Thanks. I honestly dont see why they should get away scott free and then brokers are now made the scape goats.
I dont wish to name names but i am close to the Industry and am fully aware of instances where some BDMs have helped pushed thru dodgy cases. Now the Broker is isolated for punishment alone....Not fair

I never got involved in any of the scams the lenders were suggesting , because I guessed ( and have since been proved right) that if the sh~t hit the fan, I'd be left on my own to face the music, with them denying all knowledge.

FraudBuster

FSA bans East London mortgage broker for involvement with fraud

FSA/PN/058/2009
30 April 2009
The Financial Services Authority (FSA) has banned Tower Hamlets based mortgage adviser Zia Chowdhury for certifying client identities for fraudulent mortgage applications. He also operated his firm Express Financial without being approved by the FSA as required.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/058.shtml

Robert_Sterling

This is post 100 in the thread.