A mortgage broker that entered her own bank details on applications for clients has been banned and fined £129,000 for mortgage fraud by the FSA.
Sadia Nasir, director of Ilford-based London Mortgage and Financial Services, which traded as House of Finance, also submitted seven false mortgage applications and withheld information from FSA investigators about a County Court Judgment (CCJ) made against her in 2005.
It is the first time the FSA has both banned and fined a mortgage broker for fraud and it says the six-figure sum is a message to potential future mortgage fraudsters.
Margaret Cole, director of enforcement at the FSA, says: “Ms Nasir’s actions were particularly serious and blatant, and she poses an immediate risk to lenders.
“We have banned a number of mortgage brokers and others this year in connection with mortgage fraud but the problem persists.
“We made a commitment last year to increase fines in the retail sector to act as a deterrent and this case marks a step change in the way we are dealing with mortgage fraud, in line with that commitment.
“We will continue with this new policy and intensify our crackdown on mortgage fraud. Perpetrators will increasingly find themselves facing bans, heavier fines and having to disgorge illicit gains.”
The FSA found that Nasir submitted seven mortgage applications containing false information about her own employment and earnings supported by falsified documents, including payslips, financial statements and accountant’s certificates.
In four instances, Nasir entered her own bank details on mortgage applications for clients and, in September 2005, deliberately withheld sections of an application form from FSA investigators following a CCJ against her.
The £129,000 fine is made up of £100,000 penalty and £29,000 disgorgement of illicit profits.
This year the FSA has banned 11 other mortgage brokers and one mortgage introducer for involvement in submitting false mortgage applications.
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