Lie-to-Buy Mortgage Brokers & the FSA.

RecoveringAlcoholic

but how many people in those organisations have had their careers taken away from them?

The Fat Cats just get fatter.


.

MBM

Fraudbuster, you don't seem to have added this news story.
http://www.thisismoney.co.uk/markets/article.html?in_article_id=490303&in_page_id=3&ct=5

Lets see if Abbey's Cheif Exec gets banned due to poor controls?

FraudBuster

FSA bans mortgage broker for inadequate controls at his firm

FSA/PN/122/2009
15 September 2009
The Financial Services Authority (FSA) has banned mortgage broker Arthur Kirk, trading as Grosvenor Mortgage Advice Centre, for failing to establish proper systems and controls at his business based in Manchester.
As a result of these failings the firm was at risk of being used for financial crime, particularly mortgage fraud, and customers of the firm were exposed to the risk of receiving unsuitable advice on mortgage contracts.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/122.shtml

Dan_1976

The FSA will never name and shame the big players, they will always go for the small firm or sole trader.

To behonest, there are some dodgy brokers who should be struck off, self cert and fast track mortgages have been abused and blatent lies told!

Although this thread is getting a little dull!

Just because other industry's and civil servants are on the take, does not make it right!

koexelek

Dan_1976 wrote: »

The FSA will never name and shame the big players, they will always go for the small firm or sole trader.

Exactly.
The big institutions have the FSA in their pockets.

simytrader

koexelek wrote: »

Exactly.
The big institutions have the FSA in their pockets.

My sentiments exactly, see my comment on barclays here:

forums.moneysavingexpert.com/showthread.html?t=1955315

The same rules should apply to everybody.

FraudBuster

FSA bans East London mortgage broker for misleading lenders

FSA/PN/137/2009
12 October 2009
The Financial Services Authority (FSA) has banned East London based mortgage broker, Ayodele Olubunmi Thomas, for knowingly submitting false and misleading information about his income to obtain mortgages and loan advances.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/137.shtml

I liked this bit:

4.42 As evidence of your cooperation, you mentioned that you had on several occasions given information to the FSA as a whistle blower. The FSA took the opportunity to verify this and reported its findings to you. They were that the records for 2006 and 2007 do not disclose any contact with you in that capacity. The Customer Contact Centre did have contact with you in relation to your complaint that another company was improperly using your details as a packager and you were invited to e-mail the details to it but none was received. There is no record of you having reported dishonest brokers or similar matters as a whistle blower.

FraudBuster

FSA sets out major reforms for the mortgage market

FSA/PN/140/2009
19 October 2009

The review’s key features are:

• Imposing affordability tests for all mortgages and making lenders ultimately responsible for assessing a consumer’s ability to pay;
• Banning ‘self-cert’ mortgages through required verification of borrowers’ income;
• Banning the sale of products which contain certain ‘toxic combinations’ of characteristics that put borrowers at risk;
• Banning arrears charges when a borrower is already repaying and ensuring firms do not profit from people in arrears;
• Requiring all mortgage advisers to be personally accountable to the FSA;
• Calling for the FSA’s scope to cover buy-to-let and all lending secured on a home

http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/140.shtml

Mortgagehelper

When you consider that one of the top guys at the FSA is Jon Pain, who used to run C&G (well he didn't last long) and worked for Lloyds TSB - do you think he's impartial?

The FSA doesn't know it's .... from its elbow.

Mortgagehelper

FraudBuster wrote: »

FSA sets out major reforms for the mortgage market

FSA/PN/140/2009
19 October 2009




http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/140.shtml

A lot of those changes have already been implemented - lenders insist already in having PROPER affordability checks and Self Certs have disappeared almost anyway.

Fast Track mortgages will be the next thing you see on Panorama - trust me. I've lost count of the amount of new clients who have been put on one of these, only to find out they can't remortgage 'honestly' two or three years later.

Yes, there are dodgy mortgage brokers - in the same way as there are dodgy builders, accountants and policemen. You can't avoid that.

But, many of us have been trained the right way and are honourable in our intentions.

I may lose business over it from time to time, but if prospective clients aren't prepared to be honest with me over their income, then I don't deal with them.

I, for one am not prepared to risk my livelihood for £500 commission.