The Money Programme's second investigation into fraud in the loan market is believed to be looking into lenders which fast-track applications through their systems.
Portman director Matthew Wyles, who was interviewed for the second programme, expected to air on February 11, says the BBC appears to be interested in the extent to which lenders are taking reasonable steps to detect fraud which arises through fast-tracking the underwriting process.
Last October, The Money Programme showed mortgage brokers encouraging clients to illegally inflate their incomes when applying for a self-cert mortgage. The controversy sent shockwaves through the industry and saw many lenders revising their self-cert lending policies.
Wyles says: “Lenders in the prime space are writing mortgage business below 75 per cent loan to value without requiring any evidence of income to speed up the process. They do not guarantee that they will not require any evidence and reserve the right to call for it if they deem it necessary but in practice they rarely call.”
Standard Life Bank chief executive and new CML chairwoman Anne Gunther says: “The issue is the confusion that exists over the fast-track process, which many lenders use for loans of less than 75 per cent loan to value and which is lumped in with self-cert.”