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Ben Stafford, director of policy at the AMI, said: "This is a regulated market now and any firms that inflate income or don't put the proper procedures in place could face exposure and action from the FSA. It's fraud at the end of the day."
 
The Association of Mortgage Intermediaries, the industry trade body that represents sub-prime brokers, called the alleged income exaggeration "extremely regrettable".
 
The FSA is also conducting a review of small mortgage firms' activities in the self-certified market, where borrowers certify their own incomes, and will publish its findings this autumn. The FSA assumed oversight of mortgage regulation since October at the request of the government. The mortgage industry has about 2.75m consumers each year and the property market is worth about £3,000bn.
 
But in its review of compliance by small mortgage brokers published yesterday, the FSA said there were still "too many cases" where firms did not follow the required procedures.
 
A further review of small mortgage firms' activities in the self-certified market, where borrowers certify their own incomes, and will publish its findings this autumn. The FSA assumed oversight of mortgage regulation since October at the request of the government. The mortgage industry has about 2.75m consumers each year and the property market is worth about £3,000bn.
 
But in its review of compliance by small mortgage brokers were failing to comply with rules designed to stamp out mis-selling.
 

 

 

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