FSA bans six mortgage brokers for fraud
by Gill Montia
Story link: FSA bans six mortgage brokers for fraud
The Financial Services Authority (FSA) has banned six mortgage brokers in relation to mortgage fraud.
Neale Morton, Syed Meah and Jonathan Smith all worked for Neale Morton IMS Limited of Gateshead, Tyne and Wear, and in an interview with the FSA, Jonathan Smith estimated that around 5% of the mortgage business he submitted while working for the firm was “crooked”.
Amanakwaa Adu (trading as Distinct Financial Services) in Leytonstone, Tony Oliver (trading as Finesse Financial in Barking) and mortgage intermediary, Monika Tewari, have also been banned for submitting various applications containing false information.
In the past three years, the regulator has banned 91 individuals in connection with mortgage fraud, which is believed to have been rife prior to the credit crisis.
Earlier this year, BDO estimated that mortgage fraud accounted for 18% of all reported fraud in the UK in 2009.
The accountancy firm also warned that a “tidal wave” of fraudulent borrowing is yet to appear as many banks have not yet recognised that a proportion of their non-performing loans are frauds.