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Brokers introduced majority of fraudulent mortgages last year

Fraud prevention service Credit Industry Fraud Avoidance System says 69 per cent of all mortgage fraud cases were introduced by mortgage brokers in 2010.

In its latest report, CIFAS says it is not surprising that brokers introduce the majority of fraudulent cases because most of their work is carried out over long distances and therefore makes it difficult to identify fraudulent applications.

It also says some brokers may have turned to fraudulent activities, such as changing the details of clients’ income in order to obtain a mortgage, because they are under financial pressure and are struggling to keep their companies afloat.

Mortgage fraud increased by 18 per cent from 3,004 cases in 2009 to 3,542 cases in 2010. CIFAS says the increase was largely driven by a 27 per cent increase in the number of application frauds, from 2,677 in 2009 to 3,391.

The not-for-profit organisation says application fraud now makes up 96 per cent of all fraud cases.

In 2010, the most common form of mortgage application fraud was an attempt to hide adverse credit information linked to an undisclosed address – 43 per cent compared with 30 per cent of cases in 2009 – followed by 22 per cent of cases of applicants not disclosing a bad credit history. There was another increase in those providing false employment details – 8 per cent compared with 5 per cent in 2009.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Roddy McKenzie 8th March 2011 at 2:54 pm

    Lets be more sensible with the figures please. Independents were responsible for 86% of the mortgage market…having slightly more than half of the whole market’s fraudulent cases means that independent had considerably FEWER fraudulent applications than direct.
    Is there any chance that we can have intelligent reporting please? If your maths is really this bad please take up sport reporting. If we were on a 50:50 basis we would need to have 86%. almost 20% less is the truth.

  2. According to an internal land registry memo (that was not made public) it was two specific sectors of the UK community that carried out over 65% of them I have been told. However due to our PC brigade that report was withheld and considered politically sensitive by the last govt.

    Sounds to me like the EU judgement on annuities – there are facts and inconvenient facts…. and they dont like the latter.

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