30 Apr More Needs To Be Done To Limit Mortgage Fraud
Given the state of the UK property market and the large sums of money involved, with a great deal of pressure on deals to go through, it is easy to see why there has been a lot of focus on mortgage fraud. This style of fraud can slip through easier when the money involved is increasingly on the rise and many businesses and professionals feel pressure to allow deals to happen. Knowing that chains could collapse or that the market could change quickly has led to some bad decisions being made in the property market, but it has also created an opportunity for many fraudsters to step in and benefit from the marketplace.
This is all that many fraudsters need. Some opportunist fraudsters will be delighted to step in when they have a chance but there will also be professional fraudsters who study different markets and then look to see where the best opportunities lie. In an ever changing world with technology driving a great range of change, there will always be opportunities to make a move and there will be reasons to lay low. The real experts will know when the time is right to commit fraud, but this is where the authorities need to be sharper and brighter.
It is one thing being able to investigate and review fraud and then prosecute at a later date, but the most important thing is prevention. If the authorities can crack down on the space and opportunities created in the property market, they should be able to limit or minimise the level of fraud that takes place. This is where the future of fraud prevention and investigation should be looking towards, and this is something that is taking place in the UK. It is a slow moving process and every new technology change provides more problems and opportunities but there does seem to be an acceptance that there is a need to move towards a tighter regulated industry.
Major reviews of Mortgage Fraud have allowed advances to be made
There was a major review of mortgage fraud systems and the controls used by firms undertaken by the FCA, and it was published in 2011. Many of the good practices highlighted in the report have been put into place of late, and this is where a number of firms are working towards at the moment. It is important for all firms involved in the property market to be aware that there are things that they could do better to minimise fraud, and some of these steps are suitable for all firms, regardless of how much budget that they have. If a firm is found to have carried out bad practice that leads to major mortgage fraud, a lack of budget or stating that they were unaware of the system is not likely to provide them with a great deal of sympathy. It could even lead to a firm being punished in court, so prevention is also a lot better for firms, not just the market.
Information needs to be Shared between relevant Parties
There is a lot of focus being placed on the importance of sharing information between firms and improving the general level of communication and conversation in the industry, and across the various industries that have a role to play in minimising mortgage fraud. There is also an acceptance that every firm needs to take a greater level of care and control over how they risk assess applications and what resources they have in place to spot risks and then minimise the likelihood of risks taking place. This may be a simple case of staff training and putting the right people in place to better spot the problems that can lead to mortgage fraud.
There is no doubt that a lot of the problems arise due to the cracks that can develop between different parties, so one area that companies need to work on how is they converse and communicate with third parties. When it comes to mortgage fraud, it is often the gaps that cause the problems. All of these areas are crucial in defending yourself against mortgage fraud, or even defending yourself against allegations that you have allowed mortgage fraud to occur. Some businesses are at more risk than others of mortgage fraud and it is vital that they receive specialist support and guidance when it comes to defending themselves against mortgage fraud allegations.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.