London mortgage broker banned for false applications

A south London mortgage broker has been banned for making false mortgage applications.

The Financial Services Authority moved to ban Isah Attayi Mohammed of Initial Financial Services after it was discovered he was entering false information on mortgage application forms and submitting false mortgage applications to lenders.

In particular the mortgage broker – based on the Old Kent Road – was found to be including inflated income statements, inaccurate employment details and false sets of accounts, for both himself and clients.

Jonathan Phelan, FSA head of retail enforcement, said: “Mr Mohammed was found to lack honesty and integrity for submitting fraudulent mortgage applications."

The FSA ruling found Mr Mohammed was not "fit and proper" to carry out regulated financial business and posed "a risk to lenders and therefore to confidence in the financial system".

During the case the FSA reviewed seven mortgage applications submitted by three different lenders.

In one case, Mr Mohammed made separate mortgage applications to the same firm where he stated his income was £52,000, £56,000 and £58,000.

He then made applications to a different firm saying his income was £140,000.

In a further case the mortgage broker made applications for a client saying first he was a bus driver earning £25,600, then saying he was a software engineer earning £42,000. A further application state he earned £54,000.

Mr Phelan said the FSA was continuing to find cases where mortgage brokers are making false declarations on their own mortgage applications as well submitting false mortgage applications for customers.

So far this year the FSA has banned three mortgage brokers and one mortgage introducer for submitting false mortgage applications.

"Where we come across this practice, we will prohibit such individuals from performing any functions in relation to regulated financial services," Mr Phelan said.

"We are firmly committed to dealing robustly with this kind of misconduct and changing behaviour so, in future, regulatory action may also include heavy financial penalties in the most serious cases."

Daniel Barnes