Lie-to-Buy Mortgage Brokers & the FSA.

Conrad

Some lenders will not deal with London based brokers now. Intelligent Finance told me out of 50 East London applications, when asked, only 3 of them were able to provide income proof.

I love it when the FSA say in thier reports that pretty much all is well, with a minority of brokers found to be wanting. This is so far wide of the mark - especially in London.

I reported a broker over and again to the FSA as I was aware he was obtaining dodgy payslips, but it took about 3years for them to finally shut him down.

Conrad

One point though, there truly are masses of people that for one reason or another cannot obtain a mortgage legally. Whilst we are all anti fraud, there will be a real Human cost that emminates from criteria tightening; - Many will not be able to access the property market and will be slaves to landlords.

It's sometimes hard for a middle class civil servant to understand why so many people do not fit the mould, so I'll give some examples;

+ Divorcee hides real income from spouse by being paid in cheques he cashes at cash convertor shops

+ Commision or overtime based earnings. Whilst a post man consistently earns overtime, often lenders will not use all of this as it is not 100% guaranteed. If you were that guy with a family and had earned OT for 10 years you might well feel this is holding you back and be therefore tempted into making a masaged application

+ People with 2 jobs. Lenders often will not take all of the income into account. For example they might take 3 x first job and 1 x scond job. So the person might earn the same as thier civil servant freind, but cannot obtain the same level of mortgage!

FraudBuster

FSA bans South London mortgage broker for fraud

FSA/PN/078/2009
16 June 2009
The Financial Services Authority (FSA) has banned Tooting-based mortgage broker Guiliano Chianelli for declaring false and misleading information about his income in order to obtain a mortgage.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/078.shtml

Dan_1976

I think you also have to remember that these brokers are exploiting a weakness in regulation and lenders policy. I would hope that the FSA would stop worrying about telling brokers how to TCF and do a job that they are already doing to earn money.

The FSA need to spend more time working with lenders checking applications and looking for the real bad guys. It looks like the FSA are changing as more and more are getting caught, but I imagine that this is also increaasing due lenders tightening policy. So imagine what slipped through.

They should also look at lenders sales pitches. Commission based sales and the like. Also I have been offered accounts and alsorts by a few BDM's over the years. Not many a small % taking in to account how many there are.

Conrad has a big point. Now imagine over the next few years alll those people looking to remortgage after commiting fraud! Remember there are plenty of clients who would have been in on the fraud. The PC would have been, they are the worst!

FraudBuster

FSA bans East London mortgage broker for fraud.

FSA/PN/090/2009
3 July 2009

The Financial Services Authority (FSA) has banned Hornchurch-based mortgage broker Abdul Karim for submitting a mortgage application for himself that was based on false information about his income.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/090.shtml

FraudBuster

FSA bankrupts fraudulent mortgage broker for non-payment of financial penalty

FSA/PN/093/2009
9 July 2009
The Financial Services Authority (FSA) has secured a bankruptcy order in the High Court against former East London mortgage broker Sadia Nasir for non-payment of a £129,000 financial penalty levied on her by the FSA for mortgage fraud.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/093.shtml

FraudBuster

FSA bans Essex mortgage broker for fraud

FSA/PN/094/2009
13 July 2009
The Financial Services Authority (FSA) has banned Essex mortgage broker Daniel Esqulant for submitting four mortgage applications for himself and one for a close relative all supported by false and misleading income information.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/094.shtml

FraudBuster

A press release from the SFO for a change.

Lisa Karen Sanderson (dob 23.12.1969) entered into two fraudulent mortgage agreements with the Woolwich and Yorkshire Bank in 1998 and 2000 respectively. Through the use of dishonest mortgage intermediary called Noel Bartholomew Ward (dob 22.11.64) Sanderson provided the banks with false information on the back of which she obtained mortgages to purchase two properties; 11 Fieldhead Drive and Aspen House.
Noel Ward was convicted of his role in the charge relating to Aspen House following a trial in 2004. Ward was also convicted at the same time of charges relating to four other fraudulent mortgage applications and was sentenced to six years imprisonment.

http://www.sfo.gov.uk/news/prout/pr_631.asp?id=631

FraudBuster

FSA bans Cornwall mortgage broker for fraud

FSA/PN/101/2009
24 July 2009
The Financial Services Authority (FSA) has banned Cornwall mortgage broker Stephen Sanders for submitting at least three mortgage applications on behalf of customers which he knew contained false and misleading income information.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/106.shtml

FraudBuster

FSA fines and bans Newcastle Home Loans and its directors for false information in mortgage applications

FSA/PN/107/2009
04 August 2009


The Financial Services Authority (FSA) has banned Newcastle Home Loans (NHL), a mortgage broker based in Newcastle, from carrying out regulated mortgage activities. The FSA worked closely with Northumbria Police and the Solicitors Regulation Authority (SRA) in this investigation which involved a significant number of individuals across a range of financial, property and legal businesses in the Newcastle area.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/107.shtml