Financial regulators have announced a crackdown on mortgage fraud in the UK market including a plan to make targeted visits to 200 brokers. The Financial Services Authority (FSA) is also encouraging intermediaries to report suspicions of problems either within intermediaries or lenders.
Incidents of mortgage fraud are increasing as falling house prices expose loans that were obtained using falsified information. In an open letter to the Association of Mortgage Intermediaries (AMI), Philip Robinson, director of the FSA’s financial crime and intelligence division, said both organisations had the opportunity to work together to “remove the stigma caused by the dishonest few”. He said:
“The FSA has been taking steps to deal with mortgage fraud for some time, and is now ensuring there is a co-ordinated response to this threat.”
“By doing so, we aim to address fraudulent behaviour by regulated firms. We will also support other authorities in their work to tackle fraudulent consumer behaviour.”
The AMI reacted to the letter by saying it supported the FSA and would be “sharing its views with members.”
A Sky News investigation recently found some brokers were prepared to exaggerate borrower’s earnings and even forge pay slips in an effort to land mortgages and gain commissions.
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