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  1. After the FSA finally got round to making some attempt to show they were interested in regulating the industry and seeking to crack down on fraudulent behaviour on the part of those working within the sector. It was / is? their position they would not look at complaints from individual consumers, which in itself is astonishing & concerning. The following text was to be found on their website within the contact us section - “we do not investigate individual consumer complaints†Whilst looking at their website, as of today i was unable to find the text quoted above. I wondered if anyone could advise as to whether or not the FSA have changed their policy and would as they always should have, now consider individual consumer complaints, relating to the concerning / fraudulent behaviour of those working in the industry?
  2. If only more brokers would enlighten everyone to the lenders behaviour throughout the boom times, it would become undeniable, that those employed from the top to the bottom at many lending institutions incited & conspired with thousands of mortage brokers to commit mass mortage fraud. These times seen many individuals profit in the form of commission & bonuses ranging from hundreds of pounds to millions. Then again, if only more mortgage brokers were in a position to do so!
  3. One mortgage broker lied about a police constable’s income on a mortgage application without his knowledge. Another had taken out a mortgage in a consumers name witout his knowledge or consent. Is there no line dodgy mortgage brokers won't cross in the hunt for payment fees?
  4. A mortgage broker who lied about a police constable’s income on a mortgage application has been banned by the Financial Services Authority (FSA). The mortgage broker was one of a trio of south London brokers banned by the FSA for faking mortgage applications with false passports and bogus claims about clients’ income. Byron Brown of Millbank Mortgages in Lewisham and the Millbank Consultancy in Clapham South had claimed his police constable client earned £68,000 annually after his mortgage application was rejected when he declared his income at £44,000. The officer said Brown told him to return his mortgage application form with the income section incomplete. When the officer was disciplined by his force for making a false declaration to a mortgage lender, he saw the income section had been completed with the false figure. The second practice to be hit was Trekfree Associates in Peckham. Directors Erinma Didi Jordan and Samuel Adebayo have been banned by the regulator for making numerous false applications. Trekfree was rumbled when a consumer found out the firm had taken out a mortgage in his name, without his knowledge or his consent. The directors were found to have used copies of the client's passport, given to an estate agent in a previous property deal, backed up by a false accountant's certificate signed by Adebayo. The FSA said it was concerned about a third of the 34 mortgage sales Trekfree completed between May 2005 and December 2006. Rafiu Adisa Akanbi, trading as Rafin Adisa Akanbi based in Greenwich, was banned after making 18 false applications using bogus passports, driving licenses and utility bills. In one case Akanbi applied for several mortgages using the same photographs on different driving licenses. The FSA noted the different dates of birth meant the clients were not twins. Akanbi repeatedly failed to co-operate and continued to submit mortgage applications while under investigation. ‘The actions of these brokers posed a risk to lenders, and banning them supports the FSA’s remit to tackle financial crime as well as to protect consumers and promote confidence in the financial system,’ said Jonathan Phelan, head of retail enforcement at the FSA. The crackdown is part of a larger campaign to stop mortgage fraud. Link
  5. MissMoneyPenny - Did the banks commit fraud? Koexelex Occupation - Mortgage Broker Location - Cambridgeshire Definitely. Some of them actively encouraged fraud, and promised to turn a blind eye to it. For example, I was once visited by the Business Development Manager of one of the main UK lenders. He told me that if I was going to send in false payslips, I should screw them up a bit or spill a bit of coffee on them to make them look more realistic for the file Post Link The lenders not choosing to check borrowers incomes is one thing, but actively telling brokers how to get cases through the system that should have been refused is something different. Of course, they never but it in writing, but a lot of their reps told us verbally what needed to be done, and even showed us sales aids, such as " believable incomes" to put down for certain professions on ocasions, I have even been told my lenders that they will guarantee not to check the clients income if they agreed to take out an insurance policy with them, as well as the mortgage I have never ever arranged a mortgage for a client where I was not happy that a borrower could afford the payments, but I know brokers in the industry who openly boasted of getting someone 10 times income by using the lender's own tips A lot of the high street lenders that are so called " pillars of society" are very corrupt organisations, believe me. Post Link Naijpower - How about banning some lenders for a change. Why does it take FSA to detect all this. Some lenders knowingly passed some of these application out of greed and by making their criteria so easy and silly e.g self cert no checks; Day 1 self employed; Accept basic accounting reference ete etc Koexelex Agreed. Some lenders actively encouraged brokers to commit fraud. Post Link Crown - When the Halifax and Northern Rock Business Development Managers phoned me all these years ago and told me that the would not check my clients income so 'nudge nudge wink wink' we can place more of your cases, I told them to get lost. When the lenders introduced a trading platform where I could tell which would lend with no income checking for an individual slient, I was shocked. Ans still now, the regulator does not grasp the scale of the deceit. I bet if I asked the mortgage brokers I know who has exagerated client income with fake bonuses, enhanced commission etc. they would all say they had Post Link
  6. If only that was their thought process More like "We know you're a high risk and we don't think we should lend the money. However, by forwarding the loan me & my colleagues will be in line for juicy bonuses, so consider it done"
  7. Much more likely someone will find themselves on the honurs list as opposed to being found responsible Your 10p is safe, although probably not quite as safe as it would have been when ex head of HBOS James Crosby was in his role at the FSA, talk about letting the fox guard the chickens. HPCJamesCrosbyPerpetratorOfMortgageFraudThread
  8. What's not surprising is "lending irregularities at HBOS" The loans from HBOS's "high risk" unit between 2002 and 2007 are said to have led to losses at the bank of £250m. I wonder what bonuses were paid, at the same time such losses were being made. A substantial sum no doubt, one which should be added to the £250m to find the true loss figure. Jane Moore Dispatches C4 18/6/09 Chief Executive Sir James Crosby was in charge at HBOS from 2001-2006. The bank grew at an amazing pace. According to one former HBOS risk manager, it was driven by greed and excessive risk taking. Paul Moore Former Head Of Risk, HBOS Dispatches C4 18/6/09 The remuneration system for the executives was all based around growing the assets. Primarily all the executives earned their money through selling more & more. Of course the consequence of that is, that it drives a culture and forces the front line staff to do things they don’t necessarily think are right. I remember one member of staff saying to me we could never hit our sales targets and sell ethically, that was rather a pertinent point. Ultimately the greed and pride drove everything that the bank was doing and it was about increasingly selling more and more loans. I think 2005 they borrowed more money in the wholesale money markets as they’re called than the Italian government! Jane Moore Dispatches C4 18/6/09 As HBOS grew so did the executives pay packets
  9. BBC News Link The amount of fines levied by the City watchdog against individuals for mortgage fraud has already overtaken the levels for the whole of 2008. Fines handed out by the Financial Services Authority (FSA) against individuals totalled £302,445 in the first few months of 2009. In addition, nine orders have been made banning individuals or brokers from the mortgage industry. The figures mark an acceleration in the crackdown on the problem. Inflating income The most common form of mortgage fraud is inflating the income of the applicant. Sometimes this is with the customer's consent, sometimes not. This may be done by exaggerating overtime estimates, by inventing an evening job, or even by including forged payslips in the application. The advantage to the customer is a bigger mortgage for a bigger property. The broker wins a larger commission. In an interview with the BBC News website almost a year ago, the FSA's Jonathan Phelan described the fraud as a "heinous crime" and vowed to rid the industry of it. The FSA took over regulation of the mortgage market in October 2004 and in the last 18 months it has stepped up the pressure against fraudulent brokers who were operating during the booming market. In 2007, just five bans were handed down. This rose to 29 last year, with four individuals fined a total of £289,500 and ten firms fined £216,000 in total. A spokesman for the FSA said that the crackdown had provided a "credible deterrent" to those considering getting involved in the practice. He said that whistleblowers within any fraudulent firms, other lenders, and individual mortgage applicants were all key to spotting cases. Growing databases of authorised and banned brokers were also key to preventing re-entry by banned operators into the mortgage market.
  10. He didn't do too bad did he! Goodwin, Crosby, Crawshaw & many others all set up for life, due to being rewarded with a king's ransom for failure & inciting mass mortgage fraud, motivated by greed.
  11. Good question. Im sure the banks position on this matter, will relate to their own current position Whatever line suits them best, is the line they'll take. I would predict they would insist on such loans being paid back asap, in order to add to their balance sheet. Although if the loan, like so many others, was to have been packaged up and sold on, with themselves already having reaped the benefits, will they care? if they've already profited it's unlikely. At least the FSA are insisiting on the applicants and the lenders! being informed, although im sure the lenders would have had knowledge long before the FSA! So we have the firm being fined, the lenders + applicants informed and the broker subjected to a prohibition order against him. It seems the mortgage broker, despite his actions as highlighted above, would have done rather well out of all this. No fine for himself, nor repayment of the thousands or quite likely tens of thousands of pounds commission he would have received. It seems for mortage brokers & the staff who benefit from providing these loans at UK mortage lenders crime does pay!
  12. ENORMOUS REWARDS FOR FAILURE - Says it all Jane Moore Dispatches C4 18/6/09 Chief Executive Sir James Crosby was in charge at HBOS from 2001-2006. The bank grew at an amazing pace. According to one former HBOS risk manager, it was driven by greed and excessive risk taking. Paul Moore Former Head Of Risk, HBOS Dispatches C4 18/6/09 The remuneration system for the executives was all based around growing the assets. Primarily all the executives earned their money through selling more & more. Of course the consequence of that is, that it drives a culture and forces the front line staff to do things they don’t necessarily think are right. I remember one member of staff saying to me we could never hit our sales targets and sell ethically, that was rather a pertinent point. Ultimately the greed and pride drove everything that the bank was doing and it was about increasingly selling more and more loans. I think 2005 they borrowed more money in the wholesale money markets as they’re called than the Italian government! Jane Moore Dispatches C4 18/6/09 As HBOS grew so did the executives pay packets.
  13. Jane Moore Dispatches C4 18/6/09 Chief Executive Sir James Crosby was in charge at HBOS from 2001-2006. The bank grew at an amazing pace. According to one former HBOS risk manager, it was driven by greed and excessive risk taking. Paul Moore Former Head Of Risk, HBOS Dispatches C4 18/6/09 The remuneration system for the executives was all based around growing the assets. Primarily all the executives earned their money through selling more & more. Of course the consequence of that is, that it drives a culture and forces the front line staff to do things they don’t necessarily think are right. I remember one member of staff saying to me we could never hit our sales targets and sell ethically, that was rather a pertinent point. Ultimately the greed and pride drove everything that the bank was doing and it was about increasingly selling more and more loans. I think 2005 they borrowed more money in the wholesale money markets as they’re called than the Italian government! Jane Moore Dispatches C4 18/6/09 As HBOS grew so did the executives pay packets
  14. And mortgage brokers were all too happy to oblige, both brokers & lenders driven by sheer greed.
  15. They were doing alot more than turning a blind eye. HBOS & many other lenders were inciting this!
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