17-12-2007
New action taken against mortgage fraudsters
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Action is being taken by the UK's banks against those committing mortgage fraud.
With reports suggesting that the number of fraudulent mortgage applications is rising, banks, in addition to the Council of Mortgage Lenders, are increasingly seeking to take action.
Most mortgage applications are conducted through intermediaries, reports the Financial Times.
"Although in the past, mortgage fraud has been largely associated with the sub-prime segment, there is growing evidence to suggest that the credit crunch and the increasing sophistication of fraud networks are requiring lenders to be ever more vigilant across all their mortgage businesses," said Nigel Moden, director of mortgage lending advisory at Ernst & Young, one of the 'big four' accountancy firms.
Both Lloyds TSB and Abbey have reported an increase in the number of mortgage applications that may have involved fraud.
Indeed, Abbey believes there may have been a two or threefold increase in the number of cases.