• From The BBC:

    The Chelsea Building Society has revealed it has lost £41m ($67m) as a result of mortgage frauds involving some of its buy-to-let loans.The frauds are the main reason for the society staying in the red, with overall losses of £26m in the first half of the year. The frauds appear to have involved professionals colluding to inflate the value of buy-to-let properties. The society says the losses emerged after a review of all its loans. “The society has been through a difficult period and reporting a loss in the first half of the year is disappointing,” said Stuart Bernau, the Chelsea’s chairman and interim chief executive. “However, the underlying performance is strong, even though we have had to make provision for impairment and fraud losses.” Last year, the Chelsea lost £39m, the largest annual loss yet recorded by any building society. Its chief executive agreed to resign earlier this month. ExplanationThe Chelsea explained that the potentially fraudulent loans it had…

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    Posted by Jon @ 2:15 pm

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