View more on these topics

Money Programme to probe mortgage firms on fast-tracking

The Money Programme&#39s second investigation into fraud in the loan market is believed to be looking into lenders which fast-track applications through their systems.

Portman director Matthew Wyles, who was interviewed for the second programme, expected to air on February 11, says the BBC appears to be interested in the extent to which lenders are taking reasonable steps to detect fraud which arises through fast-tracking the underwriting process.

Last October, The Money Programme showed mortgage brokers encouraging clients to illegally inflate their incomes when applying for a self-cert mortgage. The controversy sent shockwaves through the industry and saw many lenders revising their self-cert lending policies.

Wyles says: “Lenders in the prime space are writing mortgage business below 75 per cent loan to value without requiring any evidence of income to speed up the process. They do not guarantee that they will not require any evidence and reserve the right to call for it if they deem it necessary but in practice they rarely call.”

Standard Life Bank chief executive and new CML chairwoman Anne Gunther says: “The issue is the confusion that exists over the fast-track process, which many lenders use for loans of less than 75 per cent loan to value and which is lumped in with self-cert.”

Recommended

Equitable clients in court bid over confidentiality

A group of Equitable Life policyholders is taking its case for compensation from the troubled insurer to the High Court after disagreeing as to whether they have an agreement or not on the basis of confidentiality. Lawyer Robert Morfee, a partner at Bristol law firm Clarke Willmott, is representing four parties in the move. He […]

Industry at danger from weapons of mass regulatory destruction

An open letter to Tony BlairI am not one to write to readers&#39 columns, having done so only once before in my 30-year career in financial services. Total frustration and very long, unnecessary hours have prompted me to find the time to put pen to paper. Now that you have survived the Hutton report and […]

Pieces of eight

The long-awaited Inland Revenue paper on Pension simplification, which formed part of the Chancellor&#39s pre-Budget review, has added some flesh to the bones of the original Green Paper. However, we are still in Limbo Land, as the Chancellor, in what appears to be an act of defiance against No 10&#39s wish to withdraw/ increase the […]

Revenue ready to look at passing on pensions

Personal pension funds could be passed to family members as death benefits after age 75 under an amendment to the simplification proposals being considered by the Inland Revenue. Revenue simplification head Peter Hopkins is understood to have reacted positively at a recent industry meeting to a proposal to redress the inequality between occupational and personal […]

Globe - thumbnail

Considerations for overseas workers in Germany

With Germany’s strong economic growth leading the eurozone’s recovery, many UK businesses are keen to be part of the success story: recent data shows that there are currently more than 280,000* employees working for a UK-controlled company in the country.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment