Tim,In 2007 a mortgage applicant went to a broker
There's a reason I asked if a broker was involved.so why did the bank inflate her income to over 160,000 in order to sell the mortgage / get the commission?
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.
I've heard this said before and don't doubt it, but how were they able to get away with it? Did the banks just take the broker's word on what the mortgage applicant's salary was, without looking for proof via a salary cert etc from their employer?My own experience talking to brokers back in those days was some were willing to get a little creative (a little, not 4x) in the form-filling
I've heard this said before and don't doubt it, but how were they able to get away with it? Did the banks just take the broker's word on what the mortgage applicant's salary was, without looking for proof via a salary cert etc from their employer?
There's a reason I asked if a broker was involved.
Who do you think got the commission? Who benefitted from changing the income figure?
I would be sure of the facts before escalating the matter.
For slightly more complex cases, banks will look at what a ‘self-employed’ borrower’s income could be if they chose to increase it.
e.g. Say I’ve my own company or business. I may choose to pay myself €40k to use up my 20% rate band and look to accumulate the rest via pension or a deferred retirement relief claim. But let’s say the underlying profits are €160k. I’ve seen banks use the higher figure.
Should the matter be reported to the Gardai Fraud department
By whom ? Why was this not filled in by the applicant ?Details of her income were left blank on the mortgage application form.
I'd start with the broker, kind of unlikely the form arrived into underwriters incomplete with sections re income unfilled so who filled in the income amounts?
Little point in doing that though, why would the broker discuss details of a transaction the OP had no part in?
Yes, the form did arrive in to the bank with sections unfilled, and in the file obtained from the bank years afterwards the income section is still unfilled. The broker said they just sent off the form with three years accounts.I'd start with the broker, kind of unlikely the form arrived into underwriters incomplete with sections re income unfilled so who filled in the income amounts?
It slipped through the net in 2007 anyway, and the bank made the sale of their product and the broker more than likely got their commission.Any broker would not have submitted an application for that amount on an income of 40k, because they'd be wasting their time.
The late borrower did write to the bank who said they did not consider it fraud, but neither did they give any explanation for the discrepancy in the figures, even when provided with copies of the accounts and loan documents. The broker did not deal with the bank for very long and no longer does so. It was the borrowers wish before she passed away that it should be investigated properly, so it would not happen again, and any white collar crime should be investigated and punished. Perhaps the bank was afraid to open a can of worms, and possibly unearth other similar cases?Write to the fraud department of the bank. They've clearly been the victims of fraud, and might want to initiate an investigation.
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