CML urges vigilance over mortgage fraud

Lenders have been urged to remain vigilant of mortgage fraud when creating the latest mortgage rates on their products.

The Council of Mortgage Lenders CML said that financial institutions offering the best mortgage rates must continue to review their protection measures.

Bernard Clarke, spokesman for the organisation, said: "The key is vigilance. Once you have set up what you think are adequate protections, criminals will try to work their way around them so lenders need to continue to give a high priority to this."

He also encouraged lenders to work with the Financial Services Authority FSA and other organisations to pool their resources and share information.

Mr Clarke said doing so will help the authorities detect fraudulent mortgage applications in the future.

The FSA recently revealed that it has fined Lewis Partnership £106,499 for mortgage fraud.

It was concluded that the firm knowingly submitted regulated mortgage applications to lenders containing false and misleading information.
 

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2011-08-12 13:06:57 © Moneyextra.com