FSA shuts down mortgage broker
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The Financial Services Authority (FSA) has ordered the closure of one mortgage broker and fined two others for mis-selling sub-prime home loans.
Redditch-based Homebuyer Securities was closed down when it was found that its advisers were not qualified to give financial advice.
Meanwhile, The Loan Company, based in Cheshire, was fined £31,500 for giving "inconsistent" information to clients and not properly checking that they could really afford their mortgages. Next Generation Mortgages, based in Cardiff, was fined £10,500 for failing to explain the risks of sub-prime loans to its clients.
The companies fell foul of the regulator following a year-long FSA investigation of the UK sub-prime mortgage market. This type of loan is sold to people who have poor credit histories or do not have steady jobs.
Widespread mis-selling of the mortgages in the US has prompted high levels of repossession and a collapse in confidence in the money markets.
Margaret Cole, head of enforcement at the FSA, said the regulator was determined to stamp out any similar activity in the UK.
"Any firms who place their customers at risk of receiving unsuitable advice through inadequate business processes can expect strong action from the FSA," she warned.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments