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mayjay

Mortgage Fraudster Banned By Fsa

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Is this the tip of the iceberg?? Probably.

http://news.bbc.co.uk/1/hi/business/7287603.stm

:lol::P Larff? I nearly SH@T!!! :lol::lol:

Mate - read the links at the foot of my posts..... LIAR LOANS have been ENDEMIC since at least 2002 -- If you read the links below - in 2003 a guy posing as a "Senior Teacher" for The [bBC's] Money Programme earning around £30-35k was told ,

IN NINE OUT OF TEN different mortgage brokers' offices,

to lie about his income....

Think about it...... MORTGAGE FRAUD/LIAR LOANS..... 90% - ENDEMIC.

Edited by eric pebble

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As much as I don't want to encourage Eric's fonts and colours, the man is spot on.

HPI has been fuelled by cheap credit and fraud.

The end of cheap credit began in August 2007 and has now made it's way to the mortgage market - you just can't get those big multiples of salary and stupid LTVs anymore.

Add to that the FSA feeling the pressure to actually do their f*cking job and stop fraud.

Result? A lot of people coming off fixed term loans that they simply can't move anywhere else? Why?

Because they shouldn't have been able to get the loan in the first place.

HPC is locked and loaded. Tomorrow's budget or next month's MPC decision can't do anything to halt it now.

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All too late now. The FSA are not fit for purpose. Remember the BBC documentary where the FSA were told about broker fraud and given the evidence. It took them 6 months to act, by which time much of the internal documentation had been shredded. The fine handed out was a few tens of thousands against a profit for the broker of many millions. This 'light touch' form of regulation will be responsible for much damage to our economy as the fraudulent loans default, and credit contracts even further.

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All too late now. The FSA are not fit for purpose. Remember the BBC documentary where the FSA were told about broker fraud and given the evidence. It took them 6 months to act, by which time much of the internal documentation had been shredded. The fine handed out was a few tens of thousands against a profit for the broker of many millions. This 'light touch' form of regulation will be responsible for much damage to our economy as the fraudulent loans default, and credit contracts even further.

Exactly. The FSA are culpable in the impact of the HPC. If they'd kept fraud to lower levels there would be less distance to drop from the peak.

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The sad thing is that people who got these dodgy loans thought the brokers were doing them a favour. They also thought they were better than people like me who had a deposit but was not willing to take on a stupid size loan that I knew I couldnt afford in the long run.

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The sad thing is that people who got these dodgy loans thought the brokers were doing them a favour. They also thought they were better than people like me who had a deposit but was not willing to take on a stupid size loan that I knew I couldnt afford in the long run.

Ain't that the truth. I clearly recall a conversation in a bar last Spring with my brother in law where he was asking me where my savings were. When I'd finished telling him he realised that I'd got a very comfortable stash and I could see the cogs whirring in his head.... "dude", he said, "why don't you just buy a place instead of renting? Renting is dead money".

His sister inherited the intelligent genes, fortunately.

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Though its good to see a mortgage broker struck off, nevertheless he has probably long since scarpered with the cash. He is probably no longer in the country. The article doesn't say.

Also he is probably a relatively small fish. I wonder if we will see any of the bigger fish, who were on the boards of banks and investment houses bought to be book by the FSA? I doubt it.

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Trouble is (for any opposition party) is that no-one except Vince Cable has been challenging the government on the liar loan issue. So now when they could make hay politically speaking and really damage Brown. It's a scandal that couldn't have been stopped because Labour had it as the main plank of their 'miracle'. But imagine the impact now if the opposition had been calling for better regulation since 2000 when the issue kicked off. It would have become a killer punch for the 2010 election.

Such poor politics in this country - sooooo complacent and reactive

EP

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Trouble is (for any opposition party) is that no-one except Vince Cable has been challenging the government on the liar loan issue. So now when they could make hay politically speaking and really damage Brown. It's a scandal that couldn't have been stopped because Labour had it as the main plank of their 'miracle'. But imagine the impact now if the opposition had been calling for better regulation since 2000 when the issue kicked off. It would have become a killer punch for the 2010 election.

Such poor politics in this country - sooooo complacent and reactive

EP

The FSA are almost an irrelevance now anyway; the banks will self-police now that they are hurting from this. When it was all about getting market share because there was so much cheap credit sloshing around they turned a blind eye to the dodgy bloke in East London who seemed to know hundreds of high-earning locals. The economy has turned now though so they are going to be checking all the documentation regardless of whether the FSA are breathing down their necks.

In fact, let's get a petition going to put the FSA in mothballs until the recession is over; they're not needed until then.

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All too late now. The FSA are not fit for purpose. Remember the BBC documentary where the FSA were told about broker fraud and given the evidence. It took them 6 months to act, by which time much of the internal documentation had been shredded. The fine handed out was a few tens of thousands against a profit for the broker of many millions. This 'light touch' form of regulation will be responsible for much damage to our economy as the fraudulent loans default, and credit contracts even further.

Absolutely bloody DISGRACEFUL..... Something not quite right there methinks.....

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Though its good to see a mortgage broker struck off, nevertheless he has probably long since scarpered with the cash. He is probably no longer in the country. The article doesn't say.

Also he is probably a relatively small fish. I wonder if we will see any of the bigger fish, who were on the boards of banks and investment houses bought to be book by the FSA? I doubt it.

I am a broker and unfortunately you are always going to get a few bad apples, and this bad apple is more or less rottten to the core, but you have to keep this in perspective, I have dealt with loads of clients WHO HAVE SUGGESTED TO ME THAT WE COULD MAKE A DEAL WORK IF I MADE IT WORK, in other words commit mortgage fraud, and I am pleased to say that I have never gone down that line and I never would, and I have also declined deals where the affordability doesnt stack up. We are all trying to make a living doing whatever job we do honestly and to the best of our ability, but no matter what job you do, you will more often than not find a few idiots who are just basically corrupt, as is the case here, - if this guy hadnt been a broker he would probably have been corrupt in whatever other job he did.

best regards

Carrington

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I am a broker and unfortunately you are always going to get a few bad apples, and this bad apple is more or less rottten to the core, but you have to keep this in perspective, I have dealt with loads of clients WHO HAVE SUGGESTED TO ME THAT WE COULD MAKE A DEAL WORK IF I MADE IT WORK, in other words commit mortgage fraud, and I am pleased to say that I have never gone down that line and I never would, and I have also declined deals where the affordability doesnt stack up. We are all trying to make a living doing whatever job we do honestly and to the best of our ability, but no matter what job you do, you will more often than not find a few idiots who are just basically corrupt, as is the case here, - if this guy hadnt been a broker he would probably have been corrupt in whatever other job he did.

best regards

Carrington

OK Carrington -- But tell me this: HOW - in a month of bleedin' Sundays can ANYONE, except a lottery winner, "afford" to buy now - or indeed, in the last 3-6 years? Please can you tell us how exactly it is done. And please tell us - how on earth can it be even remotely in the realms of "sensible finances" to borrow over 3.5 x salary? Go on -- how is it done? -- How has it been done over the last few years? It is simply NOT possible for 98% of normal, ordinary people doing ordinary jobs to have been able to "buy" UNLESS you fiddle figures and tell lies, imho.

Can you enlighten us?

Edited by eric pebble

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OK Carrington -- But tell me this: HOW - in a month of bleedin' Sundays can ANYONE, except a lottery winner, "afford" to buy now - or indeed, in the last 3-6 years? Please can you tell us how exactly it is done. And please tell us - how on earth can it be even remotely in the realms of "sensible finances" to borrow over 3.5 x salary? Go on -- how is it done? -- How has it been done over the last few years? It is simply NOT possible for 98% of normal, ordinary people doing ordinary jobs to have

been able to "buy" UNLESS you fiddle figures and tell lies, imho.

Can you enlighten us?

Err........ Carrington? Carrington? Where are you?? You were there after I posted that last one - I saw you there for a good 10 minutes!!! Why have you fled??

Edited by eric pebble

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Err........ Carrington? Carrington? Where are you?? You were there after I posted that last one - I saw you there for a good 10 minutes!!! Why have you fled??

Isn't it strange?!?!? He was there -- he was reading those few lines and questions for at least 10 minutes --- but he ran away!?!?! :(;):blink::unsure:

Edited by eric pebble

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Are you talking to yourself Eric? ;)

Looks like I am --- I ask a reasonable question or two.... and the line goes dead! Weird or what? Or maybe the questions are too painful to answer?!?!? :unsure:

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Are you talking to yourself Eric? ;)

Does anyone know the answers to the questions I put to Carrington? Looking at his posts - he is obviously a mortgage broker. Now - the simple question I ask is -- how can a normal person earning around £18-40k pa "afford" to buy a property here in the UK - WITHOUT lying and fiddling figures? Anyone know the answers? This really is the whole crux to the whole HPC matter -- I mean -- How can one do it? Certainly people earning "normal" or "average" incomes USED TO be able to AFFORD to buy and not needing to borrow more than about 3.5 x salary...... Then the madness -- and DISHONESTY kicked in.....

Is this a reasonable question to ask?

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Here's a typical, real example of a close relative. She had a deposit of £20k and a 'loan' from her parents of £40k. She earnt £30k a year as a secretary and got a 5.3 x salary mortgage of £160k. This was back in 2005 and it allowed her to buy.......wait for it........a small, one-bedroom flat in Fulham for a mere £220k. This wasn't even at the top of the market. Today she reckons the flat is worth over £300k and places were indeed selling for around that amount last summer. Incidentally a friend of mine bought a two-bed place in a neighbouring road for £97k back in 1996. These are typical FTB properties as they are normally too small for a family. It's still the case now but today's FTBs are in their mid thirties and have to use the tactics above to be able to buy.

This is how people have been buying without lying or fiddling the figures, and even then, that £40k loan was certainly not declared to the lender. Is it dishonest? No. It it economic insanity? Most definitely.

Her mortgage broker STRed last year.

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Here's a typical, real example of a close relative. She had a deposit of £20k and a 'loan' from her parents of £40k. She earnt £30k a year as a secretary and got a 5.3 x salary mortgage of £160k. This was back in 2005 and it allowed her to buy.......wait for it........a small, one-bedroom flat in Fulham for a mere £220k. This wasn't even at the top of the market. Today she reckons the flat is worth over £300k and places were indeed selling for around that amount last summer. Incidentally a friend of mine bought a two-bed place in a neighbouring road for £97k back in 1996. These are typical FTB properties as they are normally too small for a family. It's still the case now but today's FTBs are in their mid thirties and have to use the tactics above to be able to buy.

This is how people have been buying without lying or fiddling the figures, and even then, that £40k loan was certainly not declared to the lender. Is it dishonest? No. It it economic insanity? Most definitely.

Her mortgage broker STRed last year.

You will find that some lenders now require a letter from the person offering the "gift" stating that it is indeed a "gift of love" and not a loan in anyway. The lenders are clamping down

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You will find that some lenders now require a letter from the person offering the "gift" stating that it is indeed a "gift of love" and not a loan in anyway. The lenders are clamping down

So they should -- glad to hear it...

But my point is made -- UNLESS you have a big lump sum from wherever it may come -- there is NO possibility of getting a roof over your head.....

Edited by eric pebble

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  • 292 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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