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.’
- FSA calls for action over mortgage fraud The UK's financial regulator, the Financial Services Authority, is called for increased action to combat the problem with mortgage fraud, which seems to have risen since the onset of the global credit crunch, which has
- Loan fraud cases increase due to credit crunch According to a recent report the level of fraud cases in relation to loan and credit applications has gone up as the result of the global credit crunch, which has made it increasingly difficult for
- Many sub-prime borrowers are turning to brokers A recent report has shown that many sub-prime borrowers, such as those with poor credit and those without any proof of income, are now turning to brokers in order to get their loans and mortgages,
- Property sale slump could mean surge in home improvement loan applications According to a recent report the slump in property sales in parts of the UK could result in an increase in applications for home improvement loans, as homeowners resign themselves to the fact that they
- Property sector faces toughest times in thirty years Officials from the Royal Institute of Chartered Surveyors have recently stated that the UK's property sector is facing its toughest challenges in thirty years, as house prices plummet and house sales figures go through the
Comments
Got something to say?