Monday, 14 April 2008

Historic Northern Rock e-mail

I dug out an old e-mail from Northern Rock from July 2007 with this paragraph of interest.

Our Fast Track Guarantee for cases up to 85% LTV we will guarantee not to request verification of your client's income, provided that they meet our criteria upon submitting their application (please refer to the Mortgage Update for full details).

Now I wonder why they would guarantee not to check incomes?

Could be anything to do with this scandal yet to develop?


The important bit

However, Mahmood hit back, saying: “The FSA should check 10 files of every broker in the mortgage industry and the income declared on the application should be verified by the Inland Revenue.

“Then the FSA would find out how many applicants declared their genuine income compared to how many applicants and mortgage brokers had submitted correct and genuine information.”

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