Lie-to-Buy Mortgage Brokers & the FSA.

UK007BullDog

What about the people who want the mortgage and are quite willing to be fraudulent and already come in with a ready made story? Who expect the broker to back them up? I sent all of them packing but some still had to come back in and rub it in that they found someone dodgy or they did it themselves over the internet. Little lying cheats, have no mercy for them now in their 125% mortgages and negative equity.

I am still waiting with baited breath to see the banks getting hammered as they hard sell to meet their excessive high targets. There is so much miss selling going on, but no FSA watchdog looking hard enough. Since most FSA staff are from the banks.........

Dan_Collins_2

Kez100 wrote: »

But they can prove it. With accounts or a tax return. If they don't have one year, or part year in the case of a tax return, then it can't be considered an income for mortgage purposes, surely? Don't brokers guide people? I thought that was one of the arguments Mammamortgage was using in her reasons to support brokers thread.

There are lots of reasons why people use self cert and it is open to abuse. However if a client can prove his/her income then we would not need self cert.

Some lenders offer self cert with 6 months trading, how can you prove that? If a lender is willing to lend and the client wants it, I or we can only advise to a point.

Also self employed people normaly have more hectic and complicated lives and more than one income stream, it can sometimes be easier to go self cert for this reason, as rates (GMAC for example) have not always been a million miles away from status.

I think they have been abused and they have paid a part in this current climate being inflicted on us.

minimike2

Dylanwing wrote: »

Conrad - In agreement with you. Mine was a slightly unusual, but my choice was either lie or rent, and the mortgage payments were a lot less than renting would have been. We went Near-Prime with SPML, and now that things have improved, we will shortly be moving back to a recognised lender. Our case was not the normal one, but we are proof that not all liar-loans end up in re-possession. In this part of the UK, rents are high, and that is the driving factor behind a lot of the so-called dodgy loans, especially as Private renting is a real pain, and you can never feel at home. Things might have been better, had some fool had not sold all of the affordable rented properties for a fraction of their value........:whistle:

I would be careful about openly admitting to mortgage fraud on the net. you could end up in prision.



Life of a mortgage broker......damned if we do, damned if we dont, eh.

Dylanwing

I would be careful about openly admitting to mortgage fraud on the net. you could end up in prision

I don't remember Peter Mandelson getting locked away! A very good point, and obviously I told no lies. Still, if the FSA couldn't spot Northern Rock, I'd rather hope to be under their radar!

Conrad

minimike2 wrote: »

I would be careful about openly admitting to mortgage fraud on the net. you could end up in prision.

If so can we add these;

Lord Levy raising party funds in a murky manner

Cherrie Blair using a con artist to secure some Bristol flats

The army of lawyers that know full well thier client is guitly but get then off on a technicaility

The army Accoutants that ensure most self employed people pay far less Tax than they really ought to

MP's claiming undue expenses - especially MEPs

Peter Mandelson - mortgage by deception

The insurance companies that deliberatly make the health questions very complex and misleading in order to reduce thier claims when it comes to payout

Bono - wants me to save starving Africans whilst all his real estate is held in the BVIs to avoid Tax


Reality is a funny beast
There are many reasons why people need to SELFCERT - ist called real life.

homer_j_3

Whether real world is accounted for in the FSA and their rules is not the point here as far as I can see.

The point is that by breaking the rules that protect clients and being prepared to act as the judge of morality which gives you the conscience to decide what FSA rules should be abided and which should not, is wrong.

You can sail close to the wind and you can argue that "this client is the exception" but if you get a call from the FSA and cannot satisfy them you have acted properly then thats your livelihood gone in the main.

If you are able to justify to a lender why you have documented 1 amount but the tax return shows another or cannot back that up then you are going to get caught out because you have not got sufficient processes in place. If you price your advice by risk then you may feel that you are covered but the FSA are pretty thorough when they start opening files.

FraudBuster

Mortgage brokers will be targeted in a crackdown on mortgage fraud, the City regulator announced today.
The Financial Services Authority (FSA) said it planned to visit 200 intermediaries to assess their financial crime systems and controls, and gather more information from lenders who may have spotted unusual applications.
It will also work to improve intelligence sharing across the industry.
So far, lenders have alerted the FSA to more than 200 cases of suspected or proven mortgage fraud.

http://www.guardian.co.uk/money/2008/jul/22/mortgages.scamsandfraud?gusrc=rss&feed=uknews

luckyfool

FraudBuster wrote: »

http://www.guardian.co.uk/money/2008/jul/22/mortgages.scamsandfraud?gusrc=rss&feed=uknews

Good. Quite right too.

neverdespairgirl

Conrad wrote: »

The army of lawyers that know full well thier client is guitly but get then off on a technicaility

I do some criminal law. I just don't know any of these "technicalities" that people get off on.

FraudBuster

Mortgage fraud has been perpetrated on a large scale in recent years. Easy credit conditions and streamlined application processes have prompted fraudsters to target the mortgage sector. We know that mortgage fraud causes substantial social harm and can be bound up with other forms of criminality such as money laundering and people trafficking, and so it is crucial that firms remain vigilant.

http://www.fsa.gov.uk/pages/About/What/financial_crime/fraud/key_issues/mortgage/index.shtml