SPML/LMC anyone claimed for mis selling and unfair charges?

[littledotty27]

Same here. Capstone have given me the names and dates of who it was sold to and when, in writing.

 

 

Same here,even have to have them named as first mortgagee...

 

We really do need to start a class action...would you be willing Crapstone?

[leedslad67]

leeds

 

have you sent a SAR notice to this company

 

last time i asked them for this they said there would be a charge of £35 for this information and that was just for the arrears information and nothing else

i have noticed your template letter which states about a £10 fee does this apply in this case

at the moment things are going ok and they agreed to reinstate the £40 monthly and not take any more of for the insurance

[littledotty27]

Has anyone received notices from capstone in writing, with RE to transferring to the spv? If you have what are the exact dates & the spv name?

 

This might be of some importance to you!

[cher69cher69]

Hi Little Dotty

Yes I have got a letter from SPPL informing me that Capstone is taking over as administrators as of the date of the letter . I signed my agreement fo the loan on the 5th of september 2006. The letter I received from them was also dated the 5th of September 2006 which I received about 2 weeks later. I am sure I did notice somewhere that capstone took over in february 2006. Hope this helps I will find the letter with the exact wording on it and post it up okay thanku cher69

[littledotty27]

Cher

Who did capstone ask you to note for your buildings insurance? Within 3 months of changeover or you taking out a loan they sell it on...its the name of who they sold it onto we need.

 

LD

[bustthematrix]

Maybe I'm missing something but why can SPML/Capstone or whoever not be entitled to sell on your mortgage? As long as you are duly notified and the new owner has bought it legally and maintains the agreement with you as a regulated mortgage why is this fact in itself a basis/reason for class action etc?

 

Please clarify - thanks.

[littledotty27]

Maybe I'm missing something but why can SPML/Capstone or whoever not be entitled to sell on your mortgage? As long as you are duly notified and the new owner has bought it legally and maintains the agreement with you as a regulated mortgage why is this fact in itself a basis/reason for class action etc?

 

Please clarify - thanks.

 

SPML/Capstone sell your mortgage on the quiet,then ask you to note some other company on the buildings insurance(as 1st mortgagee) & pay into their account,but the company they want you to pay to is unregulated with the FSA. Therefore your mortgage has gone from a regulated to an unregulated mortgage.

[cher69cher69]

Hi again Little Dotty

I just found the letter now and it is dated the 5th of September 2006 but it was posted at least 2 weeks after that date. I signed my agreement for the loan on the exact same date the 5th of September 2006. The letter the first letter i ever received from them and it is on Capstone Headed Paper not SPPL and it is in fact mainly detailing my new loan. giving info onbrokers fees etc. it is only when you get to the back page, as if it were an afterthought they have put the following ("Please note that from the 1st of February 2006 until further notice, the administration of this secured loan will be undertaken by Capstone Mortgage Services Limited, a company which forms part of the same group as SPPL") and that is it . I will check the insurance next okay cher

[cher69cher69]

Hi Little dotty

The only reference to insurance is on the back of the original SPPL headed agreement that I signed. Where it states the following-: The borrower must ensure that we are either a joint insured party under the insurance policy or that our inerest in the property is noted on the insurance policy. (This is the only reference to insurance I can find) hope this helps .!!Cher

[cher69cher69]

Little Dotty

I just remembered that on a couple of occasions when discussing the arrears onthe telephone Capstone have mentioned a company called CAPITA around the 17th of October 2007 and another company called RESETFAN was also mentioned. Unfortunately in my notes it does not say who they are. Cher

[bustthematrix]

SPML/Capstone sell your mortgage on the quiet,then ask you to note some other company on the buildings insurance(as 1st mortgagee) & pay into their account,but the company they want you to pay to is unregulated with the FSA. Therefore your mortgage has gone from a regulated to an unregulated mortgage.

Hi LD.

I'm sure you know which side I'm on so you won't mind my questioning as this is for the good of us all.

 

Are you sure that because the new mortgage owner is not 'regulated' by the FSA, this automatically makes the mortgage contract unregulated? That may well be the case but it seems shocking that a mortgage company, daft as many of them are, would be as brazen as to pull such a clear cut and provable breach of contract. The last I heard (and I'm no expert), every residential mortgage in the UK, since Oct 2004, has to be regulated by the FSA.

 

If the mortgage is no longer 'regulated', there are grounds there for some type of action, though not sure what. There are then lots of questions:

1. Would a judge invalidate the sale of the mortgage and order return to the original mortgagee?

2. Would a judge deem the breach sufficient for the mortgage itself to be cancelled?

3. Is court the best/first port of call for actions like this or is it the lender first and then the FSA and then possibly court?

4. What is the impact of this on those who

i. Are currently facing repossession hearings

ii. Have suspended repossession orders

iii. Have already been repossessed

5. Does it matter if the mortgage owner is not regulated? What if the administrator is regulated but the new owner is not? Could that be their way around that problem?

 

I'd be really surprised to find that the money lenders have indeed shot themselves so magnificently, I suspect there's more to it and they've covered themselves...somehow ..(similiar to the securitisation debate when the issues of equitable vs legal assignment were brought to the fore)

 

Very interested to hear anyone's views on this though.

Edited August 18, 2010 by bustthematrix

[littledotty27]

Anyone with SPPL please read

 

http://www.ise.ie/app/announcementDetails.asp?ID=10610481

[littledotty27]

Regulated mortgage agreement under the Financial Services and Marketing Act 2000.

 

The FSMA 2000 Act gives rise to the following:

 

Entering into, advising on, administering and arranging regulated mortgage contracts (including arranging and advising on variations to such contracts) are regulated activities under the FSMA (together with agreeing to do any of these things). Any person carrying out a regulated activity, unless an exemption is available, must be authorised by the FSA, with specific permission required from the FSA to engage in the activity. If requirements as to authorisation and permission of lenders and brokers or as to issue and approval of financial promotions are not complied with, a regulated mortgage contract will be unenforceable against the borrower except with the approval of a court.

 

 

I have had a request to pay SPV & have them noted as 1st mortgagee on the buildings policy.

The only way to disclose this further information is to have the court order disclosure of mortgage sale agreement,mortgage administration agreement & master securitisation agreement.

The administrators have already shot themselves in the foot by disclosing the info they already have.

If the spv only owns equitable title,why would they request to be noted as 1st mortgagee?

 

The above FSMA Act basically states what happens if company are not regulated.

[Suetonius]

Anyone with SPPL please read

 

http://www.ise.ie/app/announcementDetails.asp?ID=10610481

 

Hello LD, remember that SPPL was a 2nd charge lender (CCA regulated where applicable rather than FSA) and as per your post the issuer is MORTGAGE FUNDING 2008-1 PLC.

 

Mortgage Funding 2008-PLC has a consumer credit licence.

 

Licence Number:0615142

Licence Status:Current

 

Current Applicant / Licensee:

 

Business NameCompany Registration Number Mortgage Funding 2008-1 Plc6505910

 

Categories:

 

Consumer credit Consumer hire Credit brokerage Credit reference agency Debt adjusting/counselling Debt collecting

[littledotty27]

Hi Suetonius

 

The spv that has been requested on my buildings insurance policy is Mortgage Funding 08-1BL, I don't have a 2nd charge loan,only a 1st charge with SPML, they might be CCA regulated but not FSA regulated.

 

Hello LD, remember that SPPL was a 2nd charge lender (CCA regulated where applicable rather than FSA) and as per your post the issuer is MORTGAGE FUNDING 2008-1 PLC.

 

Mortgage Funding 2008-PLC has a consumer credit licence.

 

Licence Number:0615142

Licence Status:Current

 

Current Applicant / Licensee:

 

Business NameCompany Registration Number Mortgage Funding 2008-1 Plc6505910

 

Categories:

 

Consumer credit Consumer hire Credit brokerage Credit reference agency Debt adjusting/counselling Debt collecting

[Suetonius]

Duplicate Post

[Suetonius]

Hi Suetonius

 

The spv that has been requested on my buildings insurance policy is Mortgage Funding 08-1BL, I don't have a 2nd charge loan,only a 1st charge with SPML, they might be CCA regulated but not FSA regulated.

 

Hello again LD,

 

This makes interesting reading

 

http://archive.treasury.gov.uk/docs/2001/mortgage_response.html

 

In the light of these discussions, the construction of the RAO was changed. It no longer relies upon the exercise of rights by a rights holder as a regulated activity. Instead, the RAO focuses on administering the mortgage, and this will be a regulated activity, in addition to ‘entering into a regulated mortgage contract as lender’. The RAO defines administration as notifying the borrower of changes in interest rates or payments due under the contract, or of other matters of which the contract requires, and taking necessary steps to collect or recover payments....

 

The RAO details the following as regulated activities as per s.22 of the FSMA 2000

 

(a) accepting deposits (article 5);

(aa) issuing electronic money (article 9B);

(b) effecting contracts of insurance (article 10(1));

© carrying out contracts of insurance (article 10(2));

(d) dealing in investments as principal (article 14);

(e) dealing in investments as agent (article 21);

(f) arranging (bringing about) deals in investments (article 25(1));

(g) making arrangements with a view to transactions in investments (article 25(2));

(ga) arranging (bringing about) regulated mortgage contracts (article 25A(1));19, 30

(gb) making arrangements with a view to regulated mortgage contracts (article 25A(2));19, 30

(gc) arranging (bringing about) a home reversion plan (article 25B(1));17

(gd) making arrangements with a view to a home reversion plan (article 25B(2));17

(ge) arranging (bringing about) a home purchase plan (article 25C(1));17

(gf) making arrangements with a view to a home purchase plan (article 25C(2));17

(gg) operating a multilateral trading facility (article 25D);31

(gh) arranging (bringing about) a regulated sale and rent back agreement (article 25E(1));32

(gi) making arrangements with a view to a regulated sale and rent back agreement (article 25E(2));32

(h) managing investments (article 37);

(ha) assisting in the administration and performance of a contract of insurance (article 39A);30

(i) safeguarding and administering investments (article 40); for the purposes of the permission regime, this is sub-divided into: (i) safeguarding and administration of assets (without arranging);

(ii) arranging safeguarding and administration of assets;

 

(j) sending dematerialised instructions (article 45(1));

(k) causing dematerialised instructions to be sent (article 45(2));

(l) establishing, operating or winding up a collective investment scheme (article 51(1)(a)); for the purposes of the permission regime, this is sub-divided into: (i) establishing, operating or winding up a regulated collective investment scheme;

(ii) establishing, operating or winding up an unregulated collective investment scheme;

 

(m) acting as trustee of an authorised unit trust scheme (article 51(1)(b));

(n) acting as the depositary or sole director of an open-ended investment company (article 51(1)©);

(o) establishing, operating or winding up a stakeholder pension scheme (article 52 (a)33 );

(oa)31 providing basic advice on stakeholder products31 (article 52B);10

(ob) establishing, operating or winding up a personal pension scheme (article 52(b));33

(p) advising on investments (article 53); for the purposes of the permission regime, this is sub-divided into: (i) advising on investments (except pension transfers and pension opt-outs);

(ii) advising on pension transfers and pension opt-outs;

 

(pa) advising on regulated mortgage contracts (article 53A); 19, 30

17(pb) advising on a home reversion plan (article 53B);

17(pc) advising on a home purchase plan (article 53C);

(pd) advising on a regulated sale and rent back agreement (article 53D);32

(q) advising on syndicate participation at Lloyd's (article 56);

® managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's (article 57);

(s) arranging deals in contracts of insurance written at Lloyd's (article 58);

(sa) entering into a regulated mortgage contract (article 61(1));19, 30

(sb) administering a regulated mortgage contract (article 61(2)); 19, 30

17(sc) entering into a home reversion plan (article 63B(1));

17(sd) administering a home reversion plan (article 63B(2));

17(se) entering into a home purchase plan (article 63F(1));

17(sf) administering a home purchase plan (article 63F(2));

(sg) entering into a regulated sale and rent back agreement (article 63J(1));32

(sh) administering a regulated sale and rent back agreement (article 63J(2));32

(si) meeting of repayment claims (article 63N(1)(a));34

(sj) managing dormant account funds (including the investment of such funds) (article 63N(1)(b));34

(t) entering as provider into a funeral plan contract (article 59);

(u) agreeing to carry on a regulated activity (article 64);

[patrickq1]

i was reading last night but was too tired to log where i had read that special dispensation was granted in respect to MORTGAGE EXPRESS AND NORTHERN ROCK HENCE THE NORTHERN ROCK GRANIT FUND will find it but the basis of what i read was that the goverment of the day wMX and NR would receive their protection and would be free of any injunctions laid against them.... just annoyed where ive put the file,, what has this to do with spml maybe nothing but maybe a lot

patrickq1

[littledotty27]

Sue would you please help me and others with the following:

1)Could you explain your last post in plain English are you saying the spv doesn't need to be regulated?if not why not?

 

2)Can you provide a link for people to find out if their spv holds a CCA licence

 

3)What does it mean licenced to hold clients money where can this be found out?

 

4)The borrower has to receive a s136 LOP1925 notification from their lender for their assigned mortgage to their spv to change from equitable to legal assignment.What is your opinion that this could be applied under LRA 2002 under Offences etc.

 

123 Suppression of information

(1) A person commits an offence if in the course of proceedings

relating to registration under this Act he suppresses information with the intention of—

(a) concealing a person’s right or claim, or

 

COULD IT BE ARGUED THAT BUT FOR THE S136 WHICH THE SPV INSTRUCTS THE ORIGINATOR NOT TO SEND TO THE BORROWER BECAUSE THEY DELIBERATELY DO NOT INTEND TO PERFECT THE SALE APPLIES HERE AND IS SUPRESSION OF THE TRUE SALE BECAUSE OF THE BENEFITS THEY RECEIVE FROM THIS SUPRESSION

(b) substantiating a false claim

 

(2) A person guilty of an offence under this section is liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine;

(b) on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum, or to

both.

 

Based on the spvs statement to its investors in the prospectus.

Neither the Issuer nor the Trustee currently intend to effect any registration at the Land Registry of England and Wales, the Registers of Northern Ireland or any registration or recording in the Registers of Scotland to perfect the sale of the Loans and the Collateral Security to the Issuer or the charge of them by the Issuer in favour of the Trustee nor, save as mentioned below, do they intend to obtain possession of the title deeds to the Properties and the Loans and their related Collateral Security.Is this supression under the lra 2002 for the benefit of avoiding regulation,registration fees taxes etc

[Suetonius]

Hello LD, firstly sorry for the delay in responding I am unable to access forums during the day and for some reason, I was unable to access CAG until now so this is the first opportunity I have had to respond.

 

Ok, secondly I will try my best to respond the points you have made.

 

Sue would you please help me and others with the following:

1)Could you explain your last post in plain English are you saying the spv doesn't need to be regulated?if not why not?

 

As far as I am aware the recent notices only relate to SPPL and not to SPML. Therefore, as SPPL and the subsequent legal title holder is not a regulated mortgage lender - FSA regulation as such is not necessary.

 

My previous post contained a list of the activites that are regulated.

 

2)Can you provide a link for people to find out if their spv holds a CCA licence

 

http://www2.crw.gov.uk/pr/Default.aspx

 

CCA Licence

 

• 0587576 Eurosail 2006-2BL PLC
  
• 0591954Eurosail 2006-4NP Plc
  
• 0596891Eurosail-UK 2007-1NC PLC
  
• 0600202Eurosail-UK-2007-2NP-PLC
  
• 0604708Eurosail -UK 2007 -4BL Plc
  
• 0610239Eurosail Prime-UK 2007-A Plc
  
• 0610305Eurosail-UK 2007-5NP Plc
  
• 0610313Eurosail-UK 2007-6NC Plc
  
• 0615142Mortgage Funding 2008-1 Plc
  

3)What does it mean licenced to hold clients money where can this be found out?

 

I am taking a guess this question relates to the FSA register and Capstone/Acenden. The answer is in two parts:

 

http://www.fsa.gov.uk/smallfirms/resources/faqs/register.shtml

 

What does "Unable to hold client money" mean?

 

'Unable to hold client money' indicates your firm cannot hold money on behalf of clients. For more information see our One minute guide to client money or our section on Client money.

 

http://www.fsa.gov.uk/smallfirms/your_firm_type/gi/financial_management/client_money.shtml

 

Client money

 

Protecting your clients' assets is one of our key requirements:

"A firm must arrange adequate protection for clients' assets when it is responsible for them." (FSA Principle 10)

 

Why do we have client money rules?

 

The client money rules are to protect your customers' money. They ensure a clear separation between money that belongs to your customer and money that belongs to your firm.

 

 

When does your monthly payment cease to belong to you and start to belong to the lender ?

 

4)The borrower has to receive a s136 LOP1925 notification from their lender for their assigned mortgage to their spv to change from equitable to legal assignment.What is your opinion that this could be applied under LRA 2002 under Offences etc.

 

123 Suppression of information

(1) A person commits an offence if in the course of proceedings

relating to registration under this Act he suppresses information with the intention of—

(a) concealing a person’s right or claim, or

 

COULD IT BE ARGUED THAT BUT FOR THE S136 WHICH THE SPV INSTRUCTS THE ORIGINATOR NOT TO SEND TO THE BORROWER BECAUSE THEY DELIBERATELY DO NOT INTEND TO PERFECT THE SALE APPLIES HERE AND IS SUPRESSION OF THE TRUE SALE BECAUSE OF THE BENEFITS THEY RECEIVE FROM THIS SUPRESSION

(b) substantiating a false claim

 

(2) A person guilty of an offence under this section is liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine;

(b) on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum, or to

both.

 

Based on the spvs statement to its investors in the prospectus.

Neither the Issuer nor the Trustee currently intend to effect any registration at the Land Registry of England and Wales, the Registers of Northern Ireland or any registration or recording in the Registers of Scotland to perfect the sale of the Loans and the Collateral Security to the Issuer or the charge of them by the Issuer in favour of the Trustee nor, save as mentioned below, do they intend to obtain possession of the title deeds to the Properties and the Loans and their related Collateral Security.Is this supression under the lra 2002 for the benefit of avoiding regulation,registration fees taxes etc

 

To enable me to answer the question, can you please clarify what right or claim has been concealed ?

 

I only ask because any claim or right a borrower could bring or has relating to their mortgage can be made against the legal title holder. The legal title holder, does not only have the legal rights, it also has the legal duties and obligations

[littledotty27]

Sue thanks for reply its really helpful and clears up a lot of things as this is really difficult for me to understand so please bear with me.

 

To clarify my question

 

123 Suppression of information

(1) A person commits an offence if in the course of proceedings

relating to registration under this Act he suppresses information with the intention of—

(a) concealing a person’s right or claim.

The original lender such as spml/pml supresses the information that it has sold the mortgage loan to the spv.

The fact that it is a true sale has been supressed the spvs right to register and replace the original lender has been concealed.

The spv deliberately uses its absolute power not to perfect the true sale by instructing the lender from whom it has purchased the mortgage and collateral security not to notify the borrower as required by s136 meaning although a true sale has taken place the assignment is treated only as equitable. Surely this is supression of a right concealed by both the spv and the lender. .

 

 

If the transfers take place of regulated mortgages under fsa regulation such as pml/spml and certain sppl would the contracts against the borrowers be unenforceable against the borrowers if the same spvs who are licenced are not regulated by the fsa?

[bustthematrix]

This is where I was coming from LD. I suspect the SPVs may have covered their backsides re: the FSA regulation by arranging it so that the Administrator is a regulated entity (as is fully required) and this is noted in Suetonius' post.

 

The situation for the mortgage owner (legal title holder) may however be different but we shall see.

[bustthematrix]

I only ask because any claim or right a borrower could bring or has relating to their mortgage can be made against the legal title holder. The legal title holder, does not only have the legal rights, it also has the legal duties and obligations

Hi Suetonius, good to see you're still around.

 

Can you clarify what you mean by the above? How exactly does one find out who the legal title holder to their mortgage is? Can the SPV be unregulated by the FSA while the Administrator is regulated and is this OK with the FSA?

[patrickq1]

the administrator cannot be touched, but it is possible to get information from them

The new statement of insolvency practice 16 in England and Wales makes it mandatory that administrators disclose detailed information to creditors before and after a pre-packaged administration.

[bustthematrix]

Patrickq1, I meant Mortgage Administrator/Servicer not an administrator in the generic sense of a liquidation or insolvency process.