The National Fraud Strategic Authority (NFSA) has called for the mortgage sector to work together to tackle mortgage fraud.
Their report “Fighting Mortgage Fraud Together”, published today highlights the scale of mortgage fraud loss, estimates to be hundreds of millions of pounds. Developed by the NFSA a number of key partners were engaged in the research and development, including the Council for Mortgage Lenders and the Financial Services Authority.
As well as over valued properties, the report also highlights high loan to value mortgages, which have been abused by fraudsters to maximize their profit at low risk.
The report also highlights four key areas of improvement to be made:
Designing-out the fraud risks inherent in different mortgage products and processes
Instigating preventative safeguards and controls within firms at the right level to make mortgage fraud easier to spot and stop.
Ensuring professional integrity amongst key professional sectors
Driving up the risk to perpetrators through more effective detection and prosecution
Welcoming the NFSA’s report, Attorney General, Baroness Scotland QC said,
“In this difficult economic climate, more than ever, we need to be protecting ourselves and consumers from mortgage fraud. Mortgage fraud has had a troubling impact on the financial services sector and housing markets. It can also have devastating effects on those families who may find themselves in financial difficulties as a result of artificially inflated prices or identity theft.”
The full mortgage fraud report is available here.