Mortgage Broker Firms Fined By FSA Because Of Mis-sold Mortgages

Pin It

 

The Financial Ombudsman Service (FOS) has found that the previous property owner, whose home have been repossessed by their lender, had been actually one of many mis-sold mortgages in the United Kingdom.  One of the victims of mis-sold mortgages had already lost her house during the time the FOS ruling was given compensation and when it was established that this mortgage was mis-sold to her.  The FOS ruling could set a precedent that may prevent repossession where it could be shown that mis-sold mortgages have been happening.  Mis-sold mortgages are due to the unsuitable suggestions to the mortgage borrowers.

The scandal of mis-sold mortgages in the United Kingdom was dealt in a Citizen’s Advice Bureau report that was published in 2007.  The report was based on 1,200 case studies from Citizens Advice Bureau across the nation.  It found that a lot of mortgage lenders and brokers were not making sure that the borrowers recognized the potential risks of entering into a mortgage or were aware and agreed with what the policy entailed.  The case studies furthermore revealed that in some instances, it seemed that the mortgage brokers failed to check whether the borrower may even pay the mortgage loan repayments from the beginning.

The Financial Services Authority (FSA) has already penalized three separate mortgage broker firms a total of 37,000 pounds.  The found all three mortgage brokers failed to gather sufficient customers?record of information such as personal and financial information to prove the suitability of their advice.  These three mortgage broker firms were Countrywide which was fined 14,700 pounds, Mortgage Houses Scott has been fined 11,900 pounds as well as Chariot Mortgage Services Limited was fined 10,500 pounds.  According to the FSA, the mortgage corporations that will not negotiate early will not be qualified for a 30% discount.

Countrywide never ensure appropriate arrangements in place for the supervision and monitoring of its one adviser, according to the regulator.

The FSA additionally ruled that Mortgage Houses Scott didn’t have a completely clear comprehension of the regulatory requirements added by the FSA aimed at ensuring adviser to provide affordable and appropriate advice to their customers.  Chariot failed to relate information to its clients in a fashion that was clear, fair and not misleading in that it held itself out as sourcing contracts from the whole of the market which in practice wasn’t the case, the regulator ruled.

These three mortgage broker organizations were then required to undertake review of past business to determine whether, behind the process failures, any customers got unsuitable advice and to help them put the things right.

If you believe you have been a victim of mis-sold mortgages practice of the lenders and brokers, don’t think twice to seek the assistance of a professional to review your case in order to save your property from foreclosure.

 

Leave a Reply

*