View more on these topics

FSA banned 20 brokers last year and warns it will prosecute more

The Financial Services Authority has revealed that it banned more than 20 mortgage brokers last year as part of its campaign to crack down on fraud.

The latest broker to be named and shamed is Wakefield-based adviser Mohammed Ahmed, who submitted mortgage applications with fake payslips and P60 forms.

Ahmed gave lenders false information about his personal and financial circumstances in three mortgage applications and failed to reveal the true number of properties he owned.

While working for The Mortgage Exchange, Ahmed was also found to have been involved in submitting false mortgage applications on behalf of eight clients.

Jonathan Phelan, head of retail enforcement at the FSA, has condemned Ahmed’s actions, branding them serious and blatant.

He says: “Ahmed lacks honesty and integrity in relation to his personal financial dealings.”

“As this case demonstrates, our crackdown on mortgage fraud includes paying attention to the work of individual advisers and introducers as well as approved persons and authorised firms.””

The FSA has made it clear that fraudulent mortgage brokers will continue to be held to account and predicts more cases will result in prosecution in the future.

Phelan adds: “We banned more than 20 brokers in 2008 and will continue to make examples of those who commit mortgage fraud.”

“We will also come down hard on those who help others to commit this offence until there is a general improvement in behaviour.”

Research from KMPG shows the value of mortgage fraud hit £36m last year – an almost 10-fold increase on the 2007 level.


AIFA and AMI call for member action on FSA fee hikes

The Association of Independent Financial Advisers and the Association of Mortgage Intermediaries has issued a joint statement calling for members to respond to the Financial Services Authority fees proposals.

Sub-prime sector sees 29% arrears

Sub-prime arrears in the UK rose to 28.6% in Q4 2008 from 25.1% in the previous quarter, a report from Standard & Poor’s reveals.

HSBC sees mortgage sales up 200%

Full-year results from HSBC reveal that its Rate Matcher campaign pushed up mortgage sales by 200%, with total new mortgage sales hitt-ing £17.1bn.


News and expert analysis straight to your inbox

Sign up