FSA opens 48 fraud cases against mortgage brokers
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The FSA has opened 48 mortgage fraud cases against brokers in the last six months.
In the December issue of its mortgage lenders’ round up, the regulator revealed 25 lenders have reported cases of suspected or proven fraud cases to date in 2010.
It says: “So far in 2010, 25 lenders have reported cases of suspected or proven fraud to us. This has resulted in us opening cases on 48 mortgage brokers in the last six months.
“In the overwhelming majority of these cases there was a suspected or proven fraud within the last 12 months, which shows that mortgage fraud has not gone away.”
The information was collected under the regulator’s information from lenders scheme, which states lenders should disclose any suspected instances of mortgage fraud to the FSA.
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Readers' comments (1)
Michael Fallas | 16 Dec 2010 5:31 pm
Not a surprise even with some of the strictest regulation in the world.
Regulation does not protect the consumer and those that wish to defraud will continue to do so no matter how much regulation and paperwork you throw at them.
Sadly nothing will change as they just don't want to change the bloated system, so it will continue and we will all pay the ever increasing costs.
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