The FSA has banned two mortgage brokers for submitting false applications to lenders it was announced today.
The fraud was discovered as part of the FSA’s Mortgage Intelligence helpline, which allows lenders to report suspected fraud and has seen over 200 cases reported so far.
The two partners in an Ilford-based mortgage brokerage Abbaci Associates, Amjad Malik and Tahir Mahmood, were both found to be submitting mortgage applications on behalf of their clients, which contained false information on incomes and occupations.
The breaches took place between 31 October 2004 and 11 October 2007, at which point Abbaci Associates agreed to cease conducting regulated activities at the FSA’s request.
In one case, Mahmood submitted an application for a customer who supposedly worked for him. It later transpired that the customer had never been an employee of Mahmood and that payslips submitted had been falsified.
Meanwhile, Malik was found to have submitted two different salary and employment statements for a single customer while trying to meet lending criteria for a customer.
The FSA says both brokers would have been aware that they were passing false information to lenders.
Jonathan Phelan, head of retail enforcement at the FSA, comments: “The actions of the these two partners posed a risk to lenders, and banning them supports the FSA’s financial crime objective as well as our consumer protection and market confidence objectives.
“It is part of a wider effort to tackle mortgage fraud, which includes working alongside other authorities such as the police, and acting on information received from lenders and whistleblowers.”
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