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FCA bans and fines mortgage broker over fake applications

The FCA has banned and fined a non-advised mortgage broker for failing to identify false and misleading details about borrowers’ income in mortgage applications.

The regulator has fined Bradford-based brokerage City & Provincial £1,100, and banned its sole trader and principal Zaffar Tanweer from performing any function in relation to any regulated activities.

City & Provincial ceased trading in December 2011 and the FCA says were it not for the firm’s financial position, it would have imposed a fine of £68,600.

The FCA says the firm submitted mortgage applications and supporting documentation between September 2009 and June 2011 without taking any steps to verify or challenge the information they contained.

The regulator says it acted “recklessly” and should have been aware the applications contained false or misleading information relating to employment and income details.

The firm failed to prevent the submission of eight mortgage applications on behalf of five customers which contained false information about employment and income, and failed to prevent the submission of 11 falsified wage slips, P60 documents and certified accounts.

The regulator also says Tanweer submitted false income details to a lender when applying for a residential mortgage for himself in 2008.

The FCA says: “Mr Tanweer’s conduct has fallen significantly below the required standards of the regulatory system. He lacks honesty and integrity and is therefore not a fit and proper person.”

Masons Financial Planning principal Dean Mason says: “There are very basic methods of verifying income and any broker in their right mind who wants to stay in the business would go through those processes, but presumably this individual did not. It surprises me that such behaviour still goes on.”

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