In 2007 a mortgage applicant went to a broker with proof of income, of €40,000 per year. The mortgage was for an expensive piece of land. She gave the broker three years of audited accounts. Details of her income were left blank on the mortgage application form. However, some years after taking out the mortgage, the borrower obtained the file from the bank, having made a Subject Access Report request under the 1988 and 2003 Data Protection Acts. She was shocked to discover the bank lied about her income. It went from 40k a year to over 160k a year, despite her accounts, which she had provided to the bank, showing it was 40k a year. On internal notes the bank said because of the borrowers annual income of over €160,000 she could afford the mortgage. The borrower was not asked how she would pay for the property, and she always said her income was €40k a year. Maybe in her own mind she thought she could sell it after six months or a year and make some profit. No projections were made. Unsurprisingly it was repossessed and the borrower is now deceased. Of course the borrower, an uneducated lady of modest means, should not have borrowed the money, but that is beside the point. I am not looking for judgement on the borrower.
As someone in the bank changed her income and invented a figure of over €160,000 per year, presumably to make the sale and get the commission, is that not fraud? If her income was not put down by the bank at 160k, the borrower would not have been able to borrow so much money. After getting her file years after taking out the mortgage, the borrower asked the bank for an explanation and the bank could not explain it. In the borrowers file it is all there in black and white, the audited accounts showing 40k per year, and the internal bank letter stating the borrower had an income of about €160,000 per year. and hence could afford the mortgage. The borrower could not have changed the figure from his audited accounts provided to the figure on internal bank documentation.
Should the matter be reported to the Gardai Fraud department, as someone in the bank benefited, maybe got a commission or a bonus as a result of altering the figure so much, and if white collar crime is not at least investigated, it will happen again? If someone changed documentation, got 5k commission and done it 20 times, that is €100,000. I have seen people go to jail for less. Given what happened to shareholders and borrowers too, there were victims.
As someone in the bank changed her income and invented a figure of over €160,000 per year, presumably to make the sale and get the commission, is that not fraud? If her income was not put down by the bank at 160k, the borrower would not have been able to borrow so much money. After getting her file years after taking out the mortgage, the borrower asked the bank for an explanation and the bank could not explain it. In the borrowers file it is all there in black and white, the audited accounts showing 40k per year, and the internal bank letter stating the borrower had an income of about €160,000 per year. and hence could afford the mortgage. The borrower could not have changed the figure from his audited accounts provided to the figure on internal bank documentation.
Should the matter be reported to the Gardai Fraud department, as someone in the bank benefited, maybe got a commission or a bonus as a result of altering the figure so much, and if white collar crime is not at least investigated, it will happen again? If someone changed documentation, got 5k commission and done it 20 times, that is €100,000. I have seen people go to jail for less. Given what happened to shareholders and borrowers too, there were victims.