Mis-sold Mortgage Claims > Mortgage News
Lloyds Banking Group gets tough on mortgage brokers
Fri, 04 Feb 2011
It has been reported that Lloyds Banking Group (LBG) is continuing to remove mortgage brokers from its approved panel of introducers with estimates of up to 1000 having been blacklisted and reported to the Financial Services Authority (FSA) .

With an estimated 50 per cent or more of all mortgage business being introduced by mortgage intermediaries, the market share that LBG has makes these estimates of blacklisting significant. The sector has been subjected to massive consolidation and broker defection since the financial crisis.

Evidence of fraudulent sales have been uncovered by LBG which reportedly include the provision of false or misleading information and the practice of inflated income on borrowers applications. This has also been experienced by other lenders and claims for mis-sold mortgages continue to rise.

LBG owns the former HBOS group of lenders; these include specialist and sub-prime lenders, BM Solutions and The Mortgage Business (TMB). Both these lenders were market leaders in the self certification lending sector which has experienced wide spread abuse by many brokers and attracted the attention of the FSA resulting in it banning these mortgages under its mortgage market review .
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