Lie-to-Buy Mortgage Brokers & the FSA.

FraudBuster

FSA bans and fines mortgage broker £70,000 for mortgage fraud

FSA/PN/109/2009
19 August 2009
The Financial Services Authority (FSA) has banned a London mortgage broker, Grace Nmadibechi Ada Ukala, and fined her £70,000 for knowingly submitting false and misleading mortgage applications.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/109.shtml

LizEstelle

Conrad wrote: »

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!

Thank you for injecting a note of much needed realism into this sanctimonious thread.

There are literally dozens, possibly hundreds of reasons which may prevent a mortgage applicant from being truthful about income - and these are simply not coped with by the current system.

They range from various degrees of simple embarrassment about (perfectly legal) sources of income to scenarios where disclosure would be an act of physical endangerment.

AND the mortgage market has still to come to any kind of grips with lifestyle - i.e. outgoings as well as gross income. There are huge variations in what people on the same income levels could actually afford to pay as mortgage.

We can all be 'holier-than-thou' in our attitude but the real world consists of shades of grey, not blacks and whites.

FraudBuster

FSA fines director for not disclosing information about adviser

FSA/PN/112/2009
25 August 2009
The Financial Services Authority (FSA) has fined Christopher Davies, director of Newquay Investment Services (2004) Limited, an IFA based in Cornwall, £17,500 for not disclosing to the FSA important information about an adviser Davies had employed at Newquay. This led to an unacceptable risk of customers being recommended unsuitable mortgages.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/112.shtml

Conrad

LizEstelle wrote: »

Thank you for injecting a note of much needed realism into this sanctimonious thread.

This thread tickles me tbh. My Father is a retired civil servant and and the end of the financial year the employees there were actively encouraged to spend the remaining budget on items such as expensive winter coats, to ensure next years budgetary allowance was not cut (they had to be able to show all funds were used up). In effect theft by state employees.

Then we have the MP's expenses debarcle.

Mortgage brokers are no different to anyone else and they serve a valuable purpose - allowing otherwise long term prisoners of landlords to buy thier own home - now that's what I call a meritocracy.

Why should middle class doctors with no life disadvantage have access to the home buying world, and white van man be excluded?

FraudBuster

FSA takes action against chief executive of mortgage network for poor controls over appointed representatives

FSA/PN/114/2009
1 September 2009
Moorley failed to manage and control an expanding network of mortgage brokers to acceptable standards. As a result of these failings some of the network’s Appointed Representatives (ARs) took advantage of the weak systems and controls by submitting fraudulent mortgage applications and recommending unsuitable mortgage contracts.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/114.shtml

MBM

How come Morley gets his approval withdrawn because he lacked the necessary competence, yet the FSA, Bank of England and the Treasury obviously lacked the necessary competence to manage the UK Banking sector but how many people in those organisations have had their careers taken away from them?

dunstonh

I have nothing against naming and shaming but it does seem that the FSA is happily reporting and taking action against the small firms and yet wont name and shame the big ones.

Conrad

What does fraudbuster do for a living I wonder?

_Andy_

Gotta love this 'advisor' who quite happily condones fraudulent applications on this thread -
http://forums.moneysavingexpert.com/showthread.html?t=1918445

MissMoneypenny

investigate wrote: »

MissMoneyPenny - Did the banks commit fraud?

What case are you talking about?