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Mortgage brokers banned for false applications

The FSA has banned two partners of an Essex mortgage firm for involvement in submitting false mortgage applications to lenders.

The regulator found that Amjad Malik and Tahir Mahmood, of Abbaci Associates, had submitted mortgage applications on behalf of clients which contained false information relating to the clients’ incomes and occu-pations.

The firm ceased to cond-uct regulated activities in October last year at the request of the FSA.

The regulator says that Mahmood submitted a mortgage application for a customer who purportedly worked for him but it later emerged that the pay slips that had been submitted to the lender were false and the customer was not and never had been an employee for Mahmood.

Malik submitted two entirely different statements of salary and employment details to lenders for thatcustomer in trying to meet the mortgage lender’s crit-eria for a client.

The FSA say that both partners must have known that false information was being given to lenders.

The regulator announced earlier this month that it would be bringing enforcement action in a third of the 200 cases of mortgage fraud that it has been inves-tigating.

Head of retail enforcement Jonathan Phelan says: “The actions of these two partners posed a risk to lenders and banning them supports the FSA’s financial crime objective as well as our consumer protection and market confidence objectives.

“It is part of a wider effort to tackle mortgage fraud, which includes working alongside other authorities such as the police, and acting on information received from lenders and whistleblowers.”

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