Ban for fraudulent mortgage broker
December 20, 2008
The UK’s financial regulator, the Financial services Authority, has taken action against yet another broker than has been found to have been engaging in fraudulent activity. Since the start of this year a number of brokers have been fined by the regulator, having been found guilty of a variety of fraudulent activities relating to mortgages. This is an issue that the FSA has started cracking down on particularly hard over the past year or so.
The mortgage broker is said to have tried to defraud insurance firms out of around £250,000, and as a result has been banned by the FSA. The broker, Peter King, ran the New Forest Mortgage Company in Bournemouth. He is said to have made nearly forty false applications for life insurance policies with a view to pocketing the commissions that are paid by insurance firms on life insurance applications made via brokers.
The FSA also said that it had planned to also fine the broker, but did not do this because he is already bankrupt. An official from the FSA said that the regulator would come down hard on any broker or industry professional found to be engaging in fraudulent behaviour such as this.
She said: “Peter King acted dishonestly and without integrity and posed a risk to consumers and to confidence in the financial system as a whole.”
She added: “The FSA will not hesitate to take action against individuals or firms who break our rules and put customers at risk of fraud.” The FSA also said: “The names used related to real people, such as your family, friends and former clients.”
The FSA was tipped off by one of the insurance firms involved, who suspected that there was something amiss and that some sort of fraud was being committed.
- Falsified mortgage applications result in broker being banned 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
- 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
- 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,
- Broker and lender optimistic about housing market A major High Street lender and a well known mortgage broker have both made optimistic predictions about the housing market recently, predicting that by the end of this year house prices could start to increase
- RBS under fire over mortgage fee Bailed out High Street bank, Royal Bank of Scotland has recently been under fire after announcing that it was charging a non-refundable and hefty fee on its mortgage. The bank announced that its mortgage would
Comments
Got something to say?