The Financial Services Authority has uncovered evidence suggesting mortgage brokers encourage their clients to lie on sub-prime mortgage applications.
The regulator says three firms were identified as potentially assisting customers to obtain a mortgage where their income would not meet the lenders criteria by possibly inflating income on the application form. It says the firms in question have been referred for investigation and possible enforcement action. This discovery is the result of a review carried out by the FSA into the practices of small brokers with requirements on selling and advising in the sub-prime market. The FSA says the review revealed both good and bad practices but that:“overall, there were too many cases wher...
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