Tuesday, May 27, 2008

Mortgage brokers caught inventing incomes for clients

Sky Exposes The Dodgy Mortgage 'Deals'

Last November, the Financial Services Authority (FSA) warned there were an unacceptable number of dishonest mortgage brokers. Six months on and our investigation has revealed that bad practice still exists.

Posted by angonamo @ 05:24 PM (1100 views)
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8 thoughts on “Mortgage brokers caught inventing incomes for clients

  • Read the first comment – “Property prices aren’t falling, they are being undervalued by surveyors.” Best re-name the site surveyorundervaluation.co.uk

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  • it_is_going_with_a_bang says:

    That comment section is just full of ‘upset’ people. No doubt most of them mortgage brokers going broke.
    Indeed some of them even indicating that practice should be allowed for ALL applications! lol.
    I wonder what they do for a living! lol

    It is this type of lending which has caused house prices to go mad.

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  • little professor says:

    See also the video report for undercover filming of how dodgy these brokers really are – from the backstreet asian shyster to a sharp-suited Chase De Vere employee, they’re all at it.

    http://video.news.sky.com/skynews/video/?&videoSourceID=1317242&flashURL=/feeds/skynews/latest/flash/mortgages_270508_0900.flv

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  • … and you can imagine that before the “outcry” about all this “toxic” debt, THOUSANDS of people have taken mortgages the brokers know full-well were with fantasy incomes. I still find it incredible the lenders can shrug their shoulders and say: “brokers need retraining”. That’s a load of cobblers. Their bonus structures mean if you don’t fudge, your competitor brokers move up the target graphs more than you. The lenders should be investigated for not askign any sort of questions.

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  • it_is_going_with_a_bang says:

    It’s actually easy to fix.

    Let the Inland Revenue ( or whatever fantasy name theyve made up now ) deal directly with Mortgage / Loan applications as a reference.

    Can’t see someone shoving £20k the revenue’s way in the form of PAID TAX on their fantasy earnings.
    It is very very simple.

    The only reason this isnt happening is that the government doesnt want to stop this type of fraud.
    After all if you have filed a tax return and you want a mortgage and your honest wheres the problem in involving the taxman upfront?
    Clearly there isn’t.

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  • @5. it_is_going_with_a_bang – absolutely spot on comment and one which echos several postings I have made on previous threads. Mortgage application supported by earnings as agreed by HMRC or it doesnt get approved. National Insurance numbers for cross referencing is all that is needed. Fast Track, Self Cert and non verification of income mortgages have all lead (IMO) to people being economical with the truth and this has partly fuelled the ridiculous prices now seen in the UK residential property market.

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  • Everyone knows that individual payslips are not hard evidence of income, as they are too easily forged; but the problem is getting that hard evidence. As far as I know, there is no simple facility for getting a statement of past income from HMRC; such a facility needs to be put in place.

    Mortgages should never be based on multiples current income, as many people have incomes that fluctuate. There should be a simple procedure for getting a revenue certificate that shows your declared income for the previous three years, and the FSA should oblige mortgage lenders to require such a certificate before making an advance.

    Such a facility would be in the Revenue’s interest, as it it would mitigate against those who are not declaring all their income.

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  • Yep, but the government probably wasn’t interested in spoiling the party as long as a good time was being had by all. After all, what was the FSA doing FFSake?

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