View more on these topics

Nine brokers probed for mortgage fraud

The FSA is investigating nine brokers for suspected mortgage fraud, according to a freedom of information request.

This follows a notice to lend-ers from the regulator last week, which warns that some brokers are “gaming” lenders’ systems to push through self-certification customers’ buy-to-let deals as more stringent income checks have left these borrowers unable to get a mortgage.

Enness Private Clients partner Islay Robinson says a lot of fraud cases coming to light now are the result of fraudulent activity when the mortgage market was at its peak.

He says: “Current mortgage fraud cases have mainly come from 2007 and 2008. Lenders were lending recklessly and brokers were doing anything to try and get their commission. It really was boom time. Lenders and the FSA are continuing to try to clean up the industry, which is what needs to happen.”

John Charcol senior technical manager Ray Boulger says the brokers under investigation are likely to be smaller firms. He says: “It tends to be smaller firms because they are often contr-olled by one person, so they do not have the same disciplines and controls as bigger firms.”

First Action Finance head of communications Jonathan Cornell says: “If you look at it, there are probably around 9,000 mortgage brokers trading at the moment, so if the FSA is investigating nine, it is not that many.

“In any industry, you get bad apples and it is better for all of us if the FSA finds these people and puts them out of business.”

Your Mortgage Decisions director Martin Wade says: “The continual improvement of the standards for mortgage brokers is to be welcomed.”


Smaller banks failing to assess due diligence data

A number of smaller banks are carrying out little or no due diligence on anti-money laundering, says the FSA. Last week, an FSA paper on banks’ management of high money-laundering risk situations found several banks, especially smaller ones, have due diligence procedures that resemble “a paper-gathering exercise”, with no obvious assessment of the information collected. […]

Ex-Skandia chief to head insurance unit at FSA

Advisers have welcomed the appointment of former Skandia UK chief executive Nick Poyntz-Wright to lead the FSA’s life insurance department. Poyntz-Wright, who will join the regulator on September 1, will report to Clive Adamson who heads the supervision division in the regulator’s conduct of business unit. An FSA spokesman says Poyntz-Wright’s appointment follows a restructure […]


FOS calls for tougher regulation of claims firms

Financial Ombudsman Service chief executive Natalie Ceeney says she shares the industry’s concern that claims management firms should be subject to tougher regulation. Speaking at the British Bankers’ Association international banking conference in London today Ceeney (pictured) acknowledged that many consumers feel they do not have the time or ability to bring a complaint themselves, […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. Oh Mr Boulger please dont make such naieve statements
    Remember the large firm of brokers The Mortgage Times Group. What happened to them.

  2. I I used to work for Charcol in the past when my Line manager was ‘asked to leave’ for dodgy BTL dealings.

Leave a comment