The Financial Service Authority recently launched an investigation into U.K. self-certified mortgages, following a British Broadcasting Corp. program that highlighted an increase in fraudulent claims.

According to the BBC findings, a large percentage of borrowers applying for these non-conforming mortgages were encouraged by brokers to exaggerate yearly salaries in order to boost their borrowing potential. According to one broker, at least 30% of his business was accounted for from these types of mortgages.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.