Lenders' focus on business volume over business quality in recent years has created an environment where mortgage fraud can flourish, according to Bob Ferguson, head of financial crime policy and intelligence at the FSA.
Speaking at the Mortgage Business Expo in Manchester, Ferguson also revealed the FSA will do more to encourage brokers and lenders to report suspected fraud cases. Ferguson believes the focus on mortgage volume, coupled with lax lending policies and checks, has created an environment that is conducive to fraud. Many brokers agree, with several claiming to have turned away customers wanting self-cert mortgages because they were unaffordable, only to later find another broker had placed the client. However, Ferguson believes the current tightening of lending criteria may help to stem the t...
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