Jump to content
House Price Crash Forum
Sign in to follow this  
Timelash

Fsa Pledges To Crack Down On Mortgage Fraud

Recommended Posts

The Guardian: FSA targets mortgage fraud

Mortgage brokers will be targeted in a crackdown on mortgage fraud, the City regulator announced today.

The Financial Services Authority (FSA) said it planned to visit 200 intermediaries to assess their financial crime systems and controls, and gather more information from lenders who may have spotted unusual applications.

It will also work to improve intelligence sharing across the industry.

So far, lenders have alerted the FSA to more than 200 cases of suspected or proven mortgage fraud.

In the past 12 months, 17 brokers have been banned by the FSA, while more have faced fines for committing fraud against banks and building societies.

Cases have involved brokers making applications in their own names in order to rip-off lenders, and allowing customers to inflate their incomes on application forms.

Cor blimey, who'da thunk it?

Share this post


Link to post
Share on other sites

About time those employed in the FSA coughed up the last few years of salary. They've obviously been paid for work that they haven't done.

Still, targeting brokers is one thing - the brokers were getting away with what they could - in fact they were encouraged by the lending industry to do so as it lessened the the checking and requirements and allowed anything through. Punitive damages should be the order of the day - the FSA were supposed to regulate the higher levels of the food chain as well. Taxpeyers now have liabilities that would would never have had if they had done their job in the first place.

Share this post


Link to post
Share on other sites

This isn't about the FSA (which is useless), or mortgage brokers involved in fraud (is there any other type these days?). This is about the banks closing in on fraudulent, over-leveraged borrowers. That's where all this is heading fast. It's been well predicted on this site that when the crash started the banks would turn decidedly nasty in a determined effort to get their money back. It's only logical that they start with the lie-to-buy fools who are soon to be repossessed. It's still fascinating to see how the regulators, who turned a blind eye to mortgage fraud on a massive scale, are now busy doing the banks' dirty work for them. Shows whose side they're on.

Share this post


Link to post
Share on other sites

The FSA could start looking for fraud by reading the papers.

From the Guardian on Saturday: "Three-quarters of the answer -- In their desperation to sell you a home, property developers have come up with a new wheeze: they'll front up 25% of the asking price."

http://www.guardian.co.uk/money/2008/jul/1...firsttimebuyers

This is nothing but mortgage fraud. The builders are fronting 25% of the purchase "price" as a no interest loan so that first time buyers can go to a mortgage provider and claim that they're applying for a 75% loan-to-value mortgage, though, in reality, they're applying for a 100% LTV mortgage on a property with an artificially inflated price. Wonder if the FSA can be bothered to get off their butts to actually launch an investigation?

Edited by RichC

Share this post


Link to post
Share on other sites
About time those employed in the FSA coughed up the last few years of salary. They've obviously been paid for work that they haven't done.

Still, targeting brokers is one thing - the brokers were getting away with what they could - in fact they were encouraged by the lending industry to do so as it lessened the the checking and requirements and allowed anything through. Punitive damages should be the order of the day - the FSA were supposed to regulate the higher levels of the food chain as well. Taxpeyers now have liabilities that would would never have had if they had done their job in the first place.

Agreed, i've heard that sales teams for the banks essentially told mortgage brokers that their fast track and self-cert ranges meant their customers could get much bigger loans than they would normally be allowed. They just didn't want to be told about it so they can now act completely innocent. I'm sure one of the mortgage brokers on here could confirm that.

Share this post


Link to post
Share on other sites
Mortgage brokers will be targeted in a crackdown on mortgage fraud

I hear they've just wrapped up a complex VAT fraud case involving mileage allowances for Penny Farthing bicycles, no doubt they'll be wanting to get their teeth into this new challenge right away.

Share this post


Link to post
Share on other sites

I think that a root cause of the shocking regulation is in the FSA's remit. It has four statutory objectives

http://www.fsa.gov.uk/Pages/About/Aims/Statutory/index.shtml

and number 1 is `maintaining confidence in the financial system'

The way I see it, there are two basic ways of doing this:

1. Ensure the financial system deserves confidence by stopping the likes of NR early on in its innovative and exciting business model, and accept that this will be bumpy ride

2. Have a smooth ride, pretend everything is OK so that the people stay confident because they don't know what's really happening. Cross your fingers.

Which option was chosen?

Ironically, another of the objectives is to promote public understanding of the financial system. I have a feeling that this can't be done at the same time as maintaining confidence in that very system.

(Or should they promote public understanding by just linking to this site?)

Y

Share this post


Link to post
Share on other sites
Agreed, i've heard that sales teams for the banks essentially told mortgage brokers that their fast track and self-cert ranges meant their customers could get much bigger loans than they would normally be allowed. They just didn't want to be told about it so they can now act completely innocent. I'm sure one of the mortgage brokers on here could confirm that.

Hell yes, their business development managers were always coming round and pointing out that if you stuck £X in as a salary then everything would be fine as long as they had a deposit. I have been specifically asked by an underwriter to inflate someone's income so it would go through the online application and he could pick up the case (this isn't as dodgy as it may sound, ultimately the underwriter's knew of the lower income, it was done to bypass an automated system)

Share this post


Link to post
Share on other sites
Well i've heard of locking the stable door after the horse has bolted, but this.....well the horse that bolted has had several foals...who have all now died of old age.

:rolleyes:

Lol, this must be the best reply i have ever read on here.

Share this post


Link to post
Share on other sites
The Guardian: FSA targets mortgage fraud

Cor blimey, who'da thunk it?

We need to first crackdown on the fool that foisted this scam on us in the first place. Gordon "bubble" Brown. What a pathetic shower New Labour are. Not a word while inflation in house prices was raging and now the scam is exposed for what it is they want to make it look like they are doing something. TLTL Gordon, quit before you are thrown out.

We had better hope New Labour do not win Glasgow East on, what is it, Thursday?

Edited by Realistbear

Share this post


Link to post
Share on other sites
Horse ....stable door ......bolted!

Yes, that's very true. However..... it's good that they are locking the door shut now and no-one can get back in.

The thing, as the liar loan fixed periods end, the liars will be struggling along on the SVR forever as they are never going to be able to get a replacement loan based on the "salary" they claimed they were pulling in.

The net result is that this action by the FSA at this time "locks and loads" even more repossessions over the next 12 months. Perfect storm.

Share this post


Link to post
Share on other sites
Lol, this must be the best reply i have ever read on here.

Nah you should read more threads - i've learnt loads and there's some quality posts which put my efforts well into the shade.

Humour is pretty good too though at times. Top site! ;)

Edited by the primitive

Share this post


Link to post
Share on other sites
Yes, that's very true. However..... it's good that they are locking the door shut now and no-one can get back in.

The thing, as the liar loan fixed periods end, the liars will be struggling along on the SVR forever as they are never going to be able to get a replacement loan based on the "salary" they claimed they were pulling in.

The net result is that this action by the FSA at this time "locks and loads" even more repossessions over the next 12 months. Perfect storm.

Yes this does lock and load liar loans!

However it seems mortgage suppliers have already policed themselves, I very much doubt a single self cert that isn't backed by a huge deposit is getting through, infact with balance sheets looking ever more shakey and less and less buyers for "Mortgage Investments" the FSA can sit on thier fat one like they have done all along and allow the market to correct itself.

Those crazy made up figures applied for on loans by brokers on clients behalf to help get them on the ladder (Arf) will only get pased by the most insane or VI'd lenders and then only if your buying the house off one of thier corporate builder clients at a hugely over valued price.

Thats where the FSA should be looking now and looking to fine the crap out of people that fail to mention corporate sweetners when submitting valuations (Cough Cough Barret!)

Share this post


Link to post
Share on other sites

They could start by watching the BBC video Eric has publicised, theres at least 10 criminals aiding and abetting the fraud, video evidence and the start of evidential chains leading right to the very top.

Share this post


Link to post
Share on other sites

As mortgage fraud is a criminal offence I hope that the FSA is passing all the details of these offenders to the police.

I will expect to see that all these brokers will receive substantial custodial sentences then in the next 12 to 18 months! :rolleyes:

Share this post


Link to post
Share on other sites

Typical of the bank funded FSA to go after the lowest and weakest in the food chain- most of these brokers were dancing to the mood music being played by the lenders, and could not have done it without the knowing complicty of the lenders. But will the FSA expose this to the light of day- no- they do their masters bidding.

What we see here is the usual sacrifice of a few pawns to appease the mob, while the real architects of the thing go about their business as usual.

Share this post


Link to post
Share on other sites
Typical of the bank funded FSA to go after the lowest and weakest in the food chain- most of these brokers were dancing to the mood music being played by the lenders, and could not have done it without the knowing complicty of the lenders. But will the FSA expose this to the light of day- no- they do their masters bidding.

What we see here is the usual sacrifice of a few pawns to appease the mob, while the real architects of the thing go about their business as usual.

Agreed, and let's not beat about the bush, it is THE LENDERS who should be in the dock, not just the brokers. It is beyond doubt that all the major high street banks were not only PERFECTLY AWARE of fraudulent loans, but they DID NOTHING whatsoever to curtail them. BY PROXY they are as guilty as the brokers, since they were IN FULL KNOWLEDGE of the basis on which loans they offered came about. They simply cannot crawl out of this one. If a few hundred brokers, and clients, are going to be prosecuted, then every single bank and building society in the land should be accompanying them.

VP

Edited by VacantPossession

Share this post


Link to post
Share on other sites
Hell yes, their business development managers were always coming round and pointing out that if you stuck £X in as a salary then everything would be fine as long as they had a deposit. I have been specifically asked by an underwriter to inflate someone's income so it would go through the online application and he could pick up the case (this isn't as dodgy as it may sound, ultimately the underwriter's knew of the lower income, it was done to bypass an automated system)

...the underwriter was overiding his firms internal controls and relying on the dishonesty of the intermediary to link with his own dishonesty...from your brief outline it was more than dodgy ....it was criminal .....and what was the applicant signing or was he blindfold...?.... <_<

Share this post


Link to post
Share on other sites
...the underwriter was overiding his firms internal controls and relying on the dishonesty of the intermediary to link with his own dishonesty...from your brief outline it was more than dodgy ....it was criminal .....and what was the applicant signing or was he blindfold...?.... <_<

Nah, nicking pens from the stationery cupboard carried more risk for the lenders, I mean, that was stealing and would get you fired.

Creating an off balance sheet vehicle to lend way way beyond what was safe and regulated for, pretending the investments were properly insured by zombie insurance companies, then droppping marhins to near zero for borrowers so that the whole thing could pay for bonuses at the top... nah, thats just accounting!

Share this post


Link to post
Share on other sites
Nah, nicking pens from the stationery cupboard carried more risk for the lenders, I mean, that was stealing and would get you fired.

Creating an off balance sheet vehicle to lend way way beyond what was safe and regulated for, pretending the investments were properly insured by zombie insurance companies, then droppping marhins to near zero for borrowers so that the whole thing could pay for bonuses at the top... nah, thats just accounting!

it's things like that that make me wish I had my own person legion of accountants etc.

it'd sure be nice to be able to "find" a few billion that I didn't know I had, and be able to make profits on totally losing propositions.

where else could you loan your friend 100 pounds, that you know he doesn't have, and still somehow come up with 110 pounds profit on the deal.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 399 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.