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News: Spain targets rogue brokers

Tue, 05 Jun 07

The Spanish authorities have declared war on rogue mortgage brokers...

Last week the offices of a mortgage broker based on Spain’s Costa Blanca were raided by the authorities and the proprietor arrested on grounds of providing false documentation to banks.

The bank involved heavily in this investigation, Caja Mediterraneo (CAM Bank), has now instructed its branches involved to accept no further non-resident mortgage applications for the time being.

CAM Bank is currently one of the largest providers of non-resident mortgages in Spain so this is a very significant move.

Following the raid, clients who had used this broker’s services were subject to visits from the

Guardia Civil as part of their investigations. It is not known whether further arrests have been made.

The raid should be ‘applauded’

Heather Chambers, Director of International Mortgage Solutions Ltd (IMS), Spain’s largest non-resident mortgage provider stated:  

“We are very happy that Spain is finally getting to grips with this practice. We have come across instances where clients, in the non-regulated environment that exists here, have been talked into presenting false mortgage applications to obtain the finance that they require.

“In these circumstances the broker has made no attempt to protect or care for their client, all they are concerned with is the commission they will receive from the bank. The client is rarely made aware of the longer term implications of getting involved in such transactions, maybe even repossession.

“Even worse, some clients may have been sold a mortgage product that does not exist thinking it is self-certified or non-status, with the broker providing false papers to the bank without the client’s knowledge. Last week’s raid should be applauded”.

Source EasierProperty.co.uk

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