have a safer approach to managing their fi nances.


“This system forces people into using


credit cards and sometimes, it just doesn’t work. Some lenders offer a smaller mortgage if you’re a regular saver. Abbey for example views the monthly saving as a monthly expenditure commitment. It’s ludicrous. In most cases, that regular saving is for a deposit and once the mortgage goes through that income can be redirected to paying off the debt. Lenders should give credit to savers, not penalise them. In fact, Alliance & Leicester doesn’t take the Abbey view on savings – it’s mad, they’re both in the Santander Group.”


lender broker relations Boulger adds that while there are some areas he feels should be looked at by lenders, like resolving the credit scoring systems in place and standardising how income and affordability is assessed, he recognises that there are other areas where it’s not immediately obvious to the intermediary why lenders do certain things.


“I’d always encourage talking to lenders about the reason a borrower or application is declined. I’d also encourage lenders to be more sharing about their reasons, and more open about the logic of their decisions.” He cites Halifax’s online application system for intermediaries as being a good fi rst step in that direction. He said: “The old system was


Now you can make changes pre and post-submission.


The perfect way to keep you moving.


Andy Coles,


head of business development, Quest


We recently participated in the CML Mortgage Fraud Detection Seminar, and it was clear that a major theme of this forum was to look at ways in which the industry could work closer together to help overcome mortgage-related fraud. In order to really combat this menace, we agree that it is vital to have input from all lending institutions not only regarding actual losses, but also regarding attempted frauds in order to build up a valid and relevant picture of the route fraudsters are taking to manipulate the system. As it stands, the true scale of UK- mortgage fraud is a somewhat unknown quantity. Studies and reports undertaken by a number of independent organisations continue to confl ict in their calculation of actual losses.


It is therefore crucial for the industry to continue working closely together to start turning a corner on mortgage fraud. Industry associations, bodies, lenders, surveyors, brokers, solicitors and law enforcement authorities must all be aligned on formulating new processes, reporting methods and on incorporating detection tools and systems so the industry, as a whole, creates a diffi cult barrier for fraudsters to break. Much work has been done by forums


such as the CML‘s Financial Crime Panel Group, but the message was clear from speakers representing both the Solicitors Regulation Authority and National Fraud Authority in that the willingness to share data has not been universal. I’m sure the coming BBA mortgage Fraud Seminar will be similarly well attended, and the underlying message will be similar: share with us.


Case numbers reported via the FSA’s Information from Lenders Scheme, the NFAs ‘Action Fraud’ (which is a central repository to report cases of fraud feeding into the National Fraud Intelligence Bureau) or the SRA do not currently appear to corroborate overall losses experienced within the mortgage market. Lenders need to be wary that when they are faced with the new breed of risk management tools aimed at preventing and detecting fraud, they ensure their choice is fully integrated with their own processes and does not become further fragmented across even more disparate systems.


Ultimately, when it comes to combating mortgage fraud, the only way forward is for the industry to work in coalition to share best practice and collectively investigate cases. Speaking at the earlier mentioned CML seminar, Tracey Carr, fi nancial crime manager at Santander summed it up by saying, “Lenders acting in isolation will not eradicate mortgage fraud. Industry wide cooperation is vital if it is going to be beaten.” And at Quest, we fully agree.


Our latest arrival puts you in complete control.


To our mind, the application process should be a smooth one. Our new state of the art online application system has been designed to make your life easier – by putting you in complete control. So, if you need to make simple changes to your client’s mortgage application at any point, pre or post-submission, you can. All at the touch of a button. Halifax Intermediaries. Let’s keep things moving.


Leading the way for Intermediaries www.halifax-intermediaries.co.uk


FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY.


If you do not have professional experience you should not rely on the information contained in this communication. If you are a professional and you do reproduce any part of the information contained in this communication, to be used with or to advise private clients, you must ensure it conforms to the Financial Services Authority’s advising and selling rules. Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ.


mortgAge introducer JULY 2010 29


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