No sign of widespread self-cert abuse, says FSA


Mortgage lenders have been told in a letter from the FSA there is little evidence of abuse of self-certification mortgage applicants as firms have good controls to prevent against fraud.

A Dear CEO letterdated 4th February and shown yesterday on the FSA website says there is no evidence of widespread mortgage application fraud as its review of lending controls revealed only 8% of all new mortgage lending originates through self-certification lending. Moreover, there is no evidence to suggest there is a significantly higher rate of self-certification lending arrears, says the letter written by Philip Robinson, director and financial crime sector leader, as "lenders generally have adequate controls in place to protect themselves from becoming conduits for mortgage applica...

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