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Bank statement test – how many compliance issues can you spot?

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  • 13/12/2013
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Bank statement test – how many compliance issues can you spot?
As part of its Mortgage Market Review workshops, Personal Touch has asked brokers to make notes about a mock bank statement.

The network’s trainers ask brokers to imagine they are looking at the bank statement as part of their assessment of the client’s finances. 

In the example below, what information might lead you to question the client further? And can you spot why this statement should set alarm bells ringing?

Click to the next page for answers. Please note this is a mocked-up bank statement intended for training purposes.

To see a bigger version of the statement, click on it.

ask-the-experts

Points for further conversation
  • The applicants have a direct debit to a betting website. In fact, buying lottery tickets is unlikely to cause an applicant problems. A Betfred account, on the other hand, may cause lenders to ask questions.
  • The applicants’ ability to afford their lifestyle appears to depend on a regular cash transfer from other individual. 
  • One of the applicants is an IT employee. As IT employees are often employed on a contractual basis, they may not fit mainstream lender criteria.
  • The applicants are regularly overdrawn. However, it is worth noting this is usually just before pay day.
  • Childcare payments. Under the Mortgage Market Review, advisers will be expected to ask clients whether they anticipate any future change to their affordability.
  • Insurance. The applicants are paying more on pet insurance than cover for their own income protection.

And the ultimate warning sign?

  • This mocked-up bank account statement actually derives from two different statements – a Lloyds statement and a Santander one. False bank statements and other documents are a leading cause of mortgage fraud. 

In particular, look out for

  • An incorrect log in line with the statemetn
  • A suspicious account number
  • Incorrect recordings of some transactions

Any other observations are welcome – please share them in the comment box below. 

 

 

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