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Mortgage Brokers 'bending' Rules ?

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http://www.hmfckickback.co.uk/index.php?/topic/157258-buying-a-house/

Football forum I read sometimes. Have a look at post #33 on page 1. The replies as well.

My initial thought is that these brokers must be 'bending' the information they provide - if not outright lying ?

I can't imagine how this could happen otherwise ?

Interesting straight away there were a few replies saying exactly the same thing.

Which may point to it being rather common. Affordability rules being ignored ?

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Can't see the issue. MSE brokers claim they can help people get mortgage banks refuse them. Or better deals. It's a market. They guy has bought.

Tell me when they're dragging the buyers to viewings and forcing them to buy.

You could buy in Aberdeen if you wanted. Open market.

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I had a long discussion with Jon Charcol a few months back when I was trying to find a lender that would give me a mortgage. The issue I have is that my home is a boat and so I cannot provide a permanent address for the last 3 years - I only have a "care of" address and the lenders I had approached refused to even process my application in principle because of it.

I wondered whether a broker would be able to find me a more flexible lender so I contacted them. After a lot of back and forthing spanning several days, they came back to me and said that they could not act on my behalf because they could not satisfy their own AML policy, regardless of whether I might be able to satisfy the lenders own policies.

As an introducer, it is their responsibility to carry out the AML checks, after which they vouch for the borrower in that respect - i.e. the lender then does not carry out their own checks because the AML rules allow a lender to rely on an FSA regulated company to do it for them.

So the lenders themselves may have more lax or strict policies and procedures with regards to AML when approached directly, but when a broker is involved, it is the brokers policies and procedures that dictate what constitutes a pass or fail.

So it could be the case in these instances that the broker has a more lax policy and so the borrower was refused directly but accepted indirectly.

Edit: BTW, I did eventually get a decision in principle directly.

Edited by Digsby

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I had a long discussion with Jon Charcol a few months back when I was trying to find a lender that would give me a mortgage. The issue I have is that my home is a boat and so I cannot provide a permanent address for the last 3 years - I only have a "care of" address and the lenders I had approached refused to even process my application in principle because of it.

I wondered whether a broker would be able to find me a more flexible lender so I contacted them. After a lot of back and forthing spanning several days, they came back to me and said that they could not act on my behalf because they could not satisfy their own AML policy, regardless of whether I might be able to satisfy the lenders own policies.

As an introducer, it is their responsibility to carry out the AML checks, after which they vouch for the borrower in that respect - i.e. the lender then does not carry out their own checks because the AML rules allow a lender to rely on an FSA regulated company to do it for them.

So the lenders themselves may have more lax or strict policies and procedures with regards to AML when approached directly, but when a broker is involved, it is the brokers policies and procedures that dictate what constitutes a pass or fail.

So it could be the case in these instances that the broker has a more lax policy and so the borrower was refused directly but accepted indirectly.

Edit: BTW, I did eventually get a decision in principle directly.

While a broker can perform the AML checks, it is not an entire get out of jail free card, otherwise all you would need is one corrupt IFA and any crook could undertake any transaction.

They still have the responsibility to satisfy themselves that the due diligence is satisfactory and most firms that I know obtain copies of all the documentation. They still have ongoing KYC responsibilities.

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http://www.hmfckickback.co.uk/index.php?/topic/157258-buying-a-house/

Football forum I read sometimes. Have a look at post #33 on page 1. The replies as well.

My initial thought is that these brokers must be 'bending' the information they provide - if not outright lying ?

I can't imagine how this could happen otherwise ?

Interesting straight away there were a few replies saying exactly the same thing.

Which may point to it being rather common. Affordability rules being ignored ?

:(:unsure::wacko::blink:

You wouldn't be talking about

PREDATORY LIAR LOANS

Would you??! :rolleyes::rolleyes:

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While a broker can perform the AML checks, it is not an entire get out of jail free card, otherwise all you would need is one corrupt IFA and any crook could undertake any transaction.

They still have the responsibility to satisfy themselves that the due diligence is satisfactory and most firms that I know obtain copies of all the documentation. They still have ongoing KYC responsibilities.

Thanks for the extra insight. I read through the AML guidelines to inform myself of what the requirements actually are. Ironically, one of the notes suggested that an over interest or detailed knowledge of what the requirements are could/should be taken as a warning sign that the potential customer is trying to hide something. You can't win sometimes!

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Can't see the issue. MSE brokers claim they can help people get mortgage banks refuse them. Or better deals. It's a market. They guy has bought.

Tell me when they're dragging the buyers to viewings and forcing them to buy.

You could buy in Aberdeen if you wanted. Open market.

It will be exactly the same form that's filled in for the Halifax.

What changes between the person filling it in and being rejected - and the broker filling in exactly the same form and it being accepted ?

I think there is a clear issue here. Whatever they change on that form must make a big difference.

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http://www.hmfckickback.co.uk/index.php?/topic/157258-buying-a-house/

Football forum I read sometimes. Have a look at post #33 on page 1. The replies as well.

My initial thought is that these brokers must be 'bending' the information they provide - if not outright lying ?

I can't imagine how this could happen otherwise ?

Interesting straight away there were a few replies saying exactly the same thing.

Which may point to it being rather common. Affordability rules being ignored ?

On that thread they all seem to have tried to obtain mortgages from their own bank which has always be harder than getting one with a different bank (one has your custom the other wants it) going through a broker could well circumvent those prejudices

But there again it could be down to who`s filling in the form

I see it like filling in self assessment tax returns a professional accountant always seem to be very much guided by the facts and rules,when i was self employed i changed from an accountant and let a mate who`s an IFA do it the difference was remarkable...bending the rules and pushing the envelope is a fine line but if you know where the line is it`s doable

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