Mortgage brokers banned due to false applications
Over recent months the level of concern over falsified applications put forward to mortgage lenders from brokers has increased in light of the global credit crunch that has swept across the UK from the United States, where it was sparked in the sub-prime sector of the mortgage market. The effect of the credit crunch have increased concerns over brokers falsifying employment and income information on behalf of customers that either do not earn enough realistically to raise a sufficient mortgage or do not have proof of income.
As a result of this the UK’s financial regulator, the Financial Services Authority, has been clamping down on lenders and brokers that falsify information, as it puts the borrower in danger of quickly defaulting on mortgage repayments due to being unable to afford repayments on their realistic income rather than based on their fabricated one, and this could further raise the level of repossessions, which has already been increasing due to affordability problems amongst homeowners.
Two brokers from Abbaci Associates in Ilford have now been banned by the FSA for submitting falsified applications on behalf of customers. One of the brokers even claimed that one customer worked for him, submitting false payslips – the customers had never actually worked for the broker at all. The two brokers that have been banned by the FSA are Amjad Malik and Tahir Mahmood.
One FSA official stated: “The actions of the 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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