FSA bans another mortgage broker

A mortgage broker who submitted false mortgage applications to lenders has been banned for life by the Financial Services Authority (FSA).

Omotayo Fawole who ran Oasis Mortgage and Financial Services, in Woolwich in South East London was also fined £100,000 by the city watchdog.

So far this year the regulator has taken similar action against 17 other brokers, mainly in London.

Mr Fawole's actions were described as "serious and blatant", the FSA said.

"He poses an immediate risk to lenders, " added Margaret Cole of the watchdog.

"We have banned a number of mortgage brokers and others this year in connection with mortgage fraud and we will continue to make examples of people who commit mortgage fraud until behaviour changes."

Tip-offs

The FSA said Mr Fawole had lied by exaggerating his income to obtain a mortgage for both himself and an employee.

The regulator has been worried about mortgage fraud for the past two years, a problem which is now leading to losses at some lenders such as the Bradford & Bingley.

In July the FSA called on more lenders to tip it off about suspect applications and brokers.

So far it has received about 300 tip-offs, but only from 35 of the UK's 150 lenders.

It now wants the others to be more vigilant.

It has also said it is worried about the potential for fraud against lenders who give mortgages on inflated valuations to buyers of newly built city-centre flats.

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