Falsified mortgage applications result in broker being banned
September 18, 2008
According to a recent report another broker has been both banned and fined by the UK’s financial regulator, the Financial Services Authority, as a result of falsifying mortgage applications in order to get mortgage loans pushed through. The FSA has been really cracking down on this sort of activity, and with mortgage conditions getting tighter and tighter the number of industry officials engaging in this activity seems to be on the rise, which is something that the FSA is determined to tackle.
In fact, whilst the FSA has dealt with a number of similar cases, and has taken action against the brokers responsible, in this latest case the broker has become the first to have been both banned and fined for her actions. A director of the firm London Mortgage and Financial Services, Sadia Nasir was fined £130,000 and was also banned for submitting fraudulent mortgage loan applications.
Officials that conducted the investigation found that the broker had actually falsified customer applications by using her own bank account details and employment details on them in order to push through the mortgage loan. She was also found to have falsified information about her own income and employment as well as providing false documentation to support applications such as fake wage slips and other similar documents.
The FSA stated: ‘Ms Nasir’s actions were particularly serious and blatant, and she poses an immediate risk to lenders. We have banned a number of mortgage brokers and others this year in connection with mortgage fraud but the problem persists.’
An FSA official added: ‘We will continue with this new policy and intensify our crackdown on mortgage fraud. Perpetrators will increasingly find themselves facing bans, heavier fines and having to disgorge illicit gains.’
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