the power hour
mBe 2011 Power Hour: Fighting fraud
Fraud remains the elephant in the room but with the regulator shining a light on industry shortcomings this may be about to change
Lenders have been accused in the past of sweeping mortgage fraud under the carpet and hiding it in defauLt figures – is this attitude changing? John Malone: If you put this question to me three to four years ago, I probably would’ve said there is an element of a lot of fraudulent behaviour being swept under the carpet. Today it’s completely different. It’s unfortunate the Financial Services
Authority aren’t here because I think they would tell you through a lot of the thematic visits that they’ve done over the last 15 months with 20 lenders, I don’t think any lender can any longer sweep it under the carpet and hide it in any default figures. The attitude amongst lenders in the
market now has changed significantly. The whole essence of fraud has changed considerably by the very fact we now have these meetings such as the Mortgage Fraud Forum. Back in 1990 when there was fraud in
the mortgage market, you would never get all the disciplines, whether it be the solicitors, the chartered surveyors, the lenders etc congregating together to see how they can implement systems to prevent fraud from taking place. Jennifer Bourne: My observation is that lenders are genuinely keen to understand the risks about mortgage fraud. You have
to look at the fact there are some issues with how you define mortgage fraud. Lender to lender you’ll find variations. Then you’ve got the fact that mortgage
fraud is a criminal activity. For a lender they’ve got to uncover what’s happened and then realise that loss will crystallise at some
point.There’s an element there
36 mortgage introducer AUGUST 2011
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60