A mortgage advice broker in Northern Ireland has been accused of defrauding his clients. After an investigation, the FSA found that the mortgage advice given by the broker was fraudulent. Numerous brokers are facing similar accusations as home owners struggle to keep making their payments and look for where to cast the blame. In some cases, these home owners were given bad mortgage advice that convinced them to get a loan they could not afford, under the premise that they could always refinance it later. This particular mortgage advice broker has now been banned and legal action is expected to be taken against him.FSA head of retail enforcement Jonathan Phelan stated, “We identified many individual failings in what is a very small mortgage broker business. When concerns about mortgage fraud were drawn to his attention by a lender he delegated the task of following this up to his appointed representative and never thought to check on the outcome or make changes to his systems.”“After the FSA showed him examples of types of falsified documents submitted to lenders through his business, he still failed to demonstrate that he understood the risks,” he added.
Related reading: Mortgages Advice
Comment on this article