Regulator hits mortgage brokers with ban and fine
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The FSA has fined one mortgage broker £31,500 and banned another for reckless practices which allowed false mortgage applications to be made to lenders.
Ngozika Louise Ogboru who ran JN Finance (UK) Limited, a mortgage broking firm in Harrow, has been banned from carrying out any regulated activity.
Ogboru was the only approved person at the company and was responsible for systems and controls.
The FSA found the firm’s advisers were able to submit false mortgage applications using Ogboru’s log-in details, without her knowledge. An employee was still using her log-in details five months after his employment was terminated.
Ronald Winton from Mortgage Healthcare Limited in Dundee has been fined £31,500, and will not be able to hold a senior position in a financial services firm for two years.
Winton ran a separate business from different premises, and delegated day-to-day responsibility of Mortgage Healthcare Limited to two non-approved advisers.
An FSA visit identified concerns at the proportion of interest-only and self-cert mortgages. Winton said 65 per cent of the firm’s business was interest-only mortgages, but stated he had no control over this. The FSA identified 14 out of 19 cases in which it appears that customers submitted mortgage applications to lenders which contained false information about their incomes.
Mortgage Healthcare Limited has had its permissions removed and has ceased trading.
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