Peter,
I really do take offence at that comment and ask you to take it back immediately.
I am fully aware of the ML rules and as I have already said I have reported suspicious activity – it is not me that has not taken action but the bodies I reported to.
Lisa

Peter Herd said:

Hi Julian and LisaJulian is right it is an offense not to report a suspicious transaction failure to do so could result in a fine or in some cases prison. That is straight out of my Money Laundering guide and I am a bit surprise Lisa that you did not know that – maybe you need a refresher.If you are part of a network you should report to the MLO office any paperwork of the report should not be kept with the file and the transaction should progress as normal as you can also be done for tipping off if you inform the person of your suspicionPeterIFA

Landlord jailed for mortgage fraud

A landlord convicted of mortgage fraud has had an appeal against being jailed for three-and-a-half years dismissed by three of the country's most senior judges, who said there were no grounds for challenging the convictions.

Mark Lloyd borrowed £516,847 from mortgage lenders but he lied about his occupation and income on mortgage applications between 2004 and 2009 which enabled him to purchase and remortgage properties in Irlam, Chadderton, Moston and Little Hulton, which were then let out to tenants.

During this time Mr Lloyd was working as a van driver earning between £13,000 and £14,000pa having previously been unemployed until 2006.

The 36-year-old, from Walkden, Manchester, had been jailed for three-and-a-half years in January after being found guilty of seven counts of obtaining money by deception.

Read the rest of the story from Property Investor News >>> here.

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(20-10-2012 10:36 AM)vanessa warwick Wrote:  ... but he lied about his occupation and income on mortgage applications between 2004 and 2009

I wonder how many of todays bona fide landlords did this with self-cert mortgages?

If that guy deserved to be locked up for 3.5 years, then how long should we give all the people who've stolen pens or reams of paper from work, or lied about their ages?

(20-10-2012 12:33 PM)pat_flatley Wrote:  .

(20-10-2012 10:36 AM)vanessa warwick Wrote:  ... but he lied about his occupation and income on mortgage applications between 2004 and 2009

I wonder how many of todays bona fide landlords did this with self-cert mortgages?

If that guy deserved to be locked up for 3.5 years, then how long should we give all the people who've stolen pens or reams of paper from work, or lied about their ages?

The prisons would be full!

I read somewhere that a rise in mortgage fraud is one of the early indicators of the start of a housing bubble.

One other point (may have been made before, not had time to read 12 pages of posts!) is that once you set up a body to investigate fruad, you will have more cases come to light. It doesn't mean there has been a rise in fraud, just a rise in reported/discovered fraud.

Either way it is not suprising and comes down to greed at the end of the day.

With a totally different perspective of the situation........I have not looked into NMD deals, even though I am still to be a property investor (as waiting for capital to start-up with.)

I have always assumed correctly that if you have no money, you can't start-up investing.

Thank you all for explaining clearly how NMD schemes work, I can't honestly believe that people new to investing could honestly be sucked into such schemes and think they are legal.

Although I have read with interest today posts on rent to buy which seems reasonably more straightforward if you approach after much research.

Another winning thread on here!

Marjorie

The whole BTL industry created in about 1997 when the banks had loads of money but nobody to lend it to.
Therefore the wheeze of lending on the criteria of rental income was introduced.
Previously LL had to have sufficient income their lifestyles plus affordability for rental property.
Which for obvious reasons meant that very few could start off as a LL investor.
Obviously if one could work the system to leverage to the maximum with very little own money in the property was the way to go. as you got more bang for your buck!
This left more money to invest in multiple properties.
If you could work the system to ensure you got the mostest for the leastest that is what was was going on.
Most small LL got in the game by being economical with the truth!
For lenders to imagine that all of sudden people had massive amounts of money to invest in property or that they were getting fantastic deals from developers without under the table assistance was naive to say the least.
Of course everyone knew what was going on; but in a rising property market lenders and borrowers alike weren't bothered.
Therefore fraud by lender and borrower occurred.
For lenders to be all self righteous now is a little bit hypocritical.
They were party to the fraud aswell as borrowers.
Well now these lenders want to be all honest and adhere to supposed strict criteria.
The ONLY reason for this is because they were undone by the CC.
Which revealed; surprise, surprise, the emperor had NO clothes!!
So NMD are fraud pure and simple as if the lender is aware then the mortgage deal amount will NOT go through.
As L Orme has stated on many occasions; these deals are fraudulent if there is NOT FULL disclosure to the lender.
FULL DISCLOSURE would mean NONE of these deals would go through.
Don't believe these criminal property gurus selling NMD deals!!!!!!

Shocking stuff!

Nearly seven out of ten regulatory fines issued to UK firms for fraudulent activity were applied to the financial services industry with cases of financial fraud being highest in the mortgage industry , research released today by Ernst & Young has revealed.

The study’s findings also revealed that individual prison sentences across all regulatory prosecutions ranged from eight months to ten years, with partners and directors receiving the heaviest punishments.

The research reveals that since 1997, the average prison stay of a convicted fraudster is 2,000 days.

Read the full article >>> here.

So, even a few years later, mortgage fraud really is still very popular!

Solicitor jailed in £5.7 million mortgage fraud.

A law firm boss has been jailed for eight years after masterminding a £5.7 million mortgage fraud, Court News UK reported.

Robin Choudhury, 50, siphoned off large sums of clients’ money while serving as Office Manager at the Family Law Practice (FLP) firm of solicitors, based in Cowes.

During his time at the Isle of Wight-based firm between 2007 and 2008, Choudhury transferred over £5.7 million from the proceeds of 13 fraudulent mortgages under FLP’s supervision, defrauding a string of banks and mortgage lenders.

The title reported that Choudhury used the name and details of a disabled friend in order to obtain the mortgages, using his position at FLP to gain access to the firm’s client account.

The money was then forwarded on to relatives and business partners in Bangladesh and Thailand and used by the fraudster to buy millions of pounds worth of shares in several companies.

Read the full story >>> here.

A man who over-inflated his earnings to obtain two HBOS mortgages has been jailed for 14 months.

Read the full story >>> here.

Was there an anlysis on the banks where this is more common. Maybe another angle to explore.