27
Nov
FSA cracks down on mortgage brokers
The Financial Services Authority (FSA) has heavily criticised a
number of mortgage brokers for "serious failings" in the standard
of advice being given to consumers.
In a bid to crack down on bad practice, the FSA will prosecute 17
brokers and will suspend four, with large fines in prospect for
those found to have breached regulations.
Meanwhile, a further 65 are compelled to review their service, the
FSA said, in response to a number of advisers arranging
self-certification mortgages despite a degree of doubt over
borrowers' financial details.
Stephen Bland, of the FSA, said: "There is still an unacceptable
number of firms unwilling to change and they are damaging the rest
of the industry.
"We found some willing to offer mortgages they know to be
unaffordable and to accept self-cert business even when they had
concerns that the financial information provided by the customer
was implausible. These practices are completely inconsistent with
treating customers fairly."
Around 6,500 small mortgage brokers are currently operating in the
UK.
