FSA must register individual brokers to eliminate fraud
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Regarding the story on Mortgage Strategy Online last week that several arrests had been made in a big mortgage fraud case, I think the FSA should individually register every broker whether they are in a directly authorised firm or hiding in a network.
I am aware of individuals who have entered networks because they are not capable of abiding by any rules. They are still trading and prospering. In the past we have seen some advisers giving non-adverse clients adverse mortgages to get higher proc fees or doing self-cert to get higher fees when there was no need to.
The FSA should have got rid of these individuals in 2004 when it took over regulation of the industry but it left hiding places which allowed them to scam consumers. Now they can’t do that they are committing frauds.
This industry must be cleaned up because many ethical brokers are going out of business as they are advising clients of direct deals available as this is the best advice.
The regulator seems so out of touch. The amount of mortgage fraud being committed just proves that it has been doing its job inefficiently.
JOHN REID
MORTGAGE STRATEGY ONLINE
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