Print friendly version 22 Jul 2008

FSA outlines mortgage fraud prevention plans

The Financial Services Authority (FSA) has today called on the mortgage industry to assist further in tackling mortgage fraud.

Over the last 12 months the regulator has banned 17 individuals from working in the mortgage industry due to fraud-related incidents. It has now set out its approach for tackling mortgage fraud in the UK. This will involve visits to 200 mortgage intermediaries to assess their financial crime systems and controls, as well as calling for more intelligence from lenders.

The FSA will work with other regulators and law enforcement partners to tackle the issue, including the National Fraud Strategic Authority (NFSA). It has also written to industry trade bodies to stress the importance of market-led solutions to the problem of mortgage fraud.

Philip Robinson, director of financial crime and intelligence at the FSA, said: “Mortgage fraud is a serious and widespread problem. We have set out our approach and expect the industry to do its part in tackling this menace. 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.”

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