FSA Calls on Lenders to Fight Mortgage Fraud

Mortgage lenders must do more to combat fraud, the financial watchdog has warned.

The comments were issued by the Financial Services Authority (FSA), in the wake of news that 17 mortgage brokers who had either made fraudulent applications, or potentially fraudulent applications, have been banned over the past year.

Cases of fraud included a London-based broker who was fined a total of £129,000 for submitting documents that contained faked information about her own earnings.

Philip Robinson, director of financial crime and intelligence at the FSA, said: "Brokers should make sure that they provide suitable advice, and that their businesses cannot be used for the purposes of committing fraud. Lenders must also have in place systems and controls to identify and reduce fraud, and continue to provide us with the intelligence which is key to success in this area."

Reacting to the call, Michael Coogan at the Council of Mortgage Lenders said: "The best way to tackle mortgage fraud is for lenders and the regulator to work together, along with law enforcement agencies, to root out fraudsters."

The FSA has also indicated that it will be investigating 200 more UK brokers in the near future, in order to ensure that their applications are all legal.
 

Compare mortgages via money.co.uk