UK mortgage lenders and the Financial Services Authority have joined together to set up a streamlined reporting system designed to reduce the level of fraud involving loan applications handled through mortgage intermediaries.
The Financial Services Authority (FSA) says it has already completed successful trials of the initiative, which has the support of the Council of Mortgage Lenders (CML), and is now inviting all lenders to take part.
The FSA is interested in fraudulent mortgage applications where the lender considers the matter sufficiently serious to remove the intermediary from their panel or where a subsequent investigation identifies fraud. It said it would like lenders to supply the following information: the name of the intermediary; details of any individuals involved; details and evidence of the fraud; the names of the customers involved; and summary of investigations.
According to the FSA, on the basis of information supplied so far under a pilot reporting system four intermediary firms have been referred for possible enforcement action.
Michael Coogan, director general of the Council of Mortgage Lenders, said: We welcome and support this new, coordinated approach to collecting information on fraud. We hope that it will make it easier for the FSA to identify systematic suspicion and act quickly upon it.