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Tracking Fraud, Liars Loans and the Housing Market Darkside


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Oh dear, oh dear, it looks like the Government want to make it easy to fiddle a mortgage again.

 

Shapps 'wants a rethink' on mortgage clampdown

 

31 December 2010

 

Tough new rules on mortgage lending could be watered down after the Coalition housing minister warned they risked excluding many would-be homebuyers.

 

Grant Shapps plans to use a meeting with FSA head Hector Sants next week to call for a rethink of the watchdog's reforms, according to the Financial Times.

 

The rules include tough affordability and income verification checks, and lenders would also have to make sure people with interest-only mortgages had a way of repaying their loan at the end of its term.

 

Mr Shapps claimed that under the new system he would not be able to get a mortgage on his home, despite being a well-paid minister in his 40s.

 

http://www.thisismoney.co.uk/mortgages-and...ticle_id=520644

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Amazing. This is the first time the FSA have taken action against a mortgage lender for irresponsible lending.

 

DB Mortgages fined £840,000 by FSA

 

FSA takes action over irresponsible lending and orders DB Mortgages to pay customers £1.5m in compensation

 

The Financial Services Authority (FSA) has fined DB Mortgages, part of the Deutsche Bank Group, £840,000 for irresponsible lending practices and unfair treatment of customers in arrears.

 

It is the first time the FSA has taken enforcement action against a firm for irresponsible mortgage lending, and it ordered the firm to pay about £1.5m in compensation to DB Mortgages customers.

 

The FSA said DB Mortgages failed to look at whether there were cheaper deals available for customers seeking self-certified mortgages, failed to show that customers could afford mortgages where the term continued into their retirement, and failed to make sure customers with an interest-only mortgage had thought about where they would live if they had to sell their house to pay off the loan.

 

The city watchdog said DB Mortgages treated its customers unfairly when it failed to consider the individual circumstances of those in arrears, or tell them about the options available to them. The firm also applied charges in excess of the true cost of administering accounts in arrears and repeatedly charged fees to accounts in arrears.

 

Margaret Cole, the FSA's managing director of enforcement and financial crime, said: "Firms need to understand that we will not tolerate lax lending practices and unfair treatment of customers in arrears. Firms which fail in their obligations to customers should expect not only a substantial fine, but also that they will have to pay back customers who have been disadvantaged by their failings."

 

http://www.guardian.co.uk/money/2011/feb/2...gages-fined-fsa

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