Mortgage Fraud Predicted to Increase Significantly

More Solicitors Targeted in Mortgage Scams, Forensic Expert Warns
More mortgage frauds involving solicitors are expected to be uncovered in the next year, according to Brian Spence, Head of Forensics at Montpelier Professional Limited.
There are signs that the economic downturn will force fraudulent schemes to the surface as properties can’t be sold for their inflated values, Mr. Spence said.
The Solicitors Regulation Authority (‘SRA’), a governing body, has been clamping down on mortgage fraud involving solicitors by issuing advice to all firms on the warning signs of suspicious transactions and reminding them of their obligations to ensure they do not become involved.
Figures from the SRA released last month showed that reports of suspected property fraud increased from 85 in 2005 to more than 400 in 2009. The organisation predicts that its campaign has saved lenders as much as £20 million over the past nine months.
Among the concerns of law firms and other professional advisers is the risk of being sued by lenders trying to recoup losses on their loan books, which happened after the last wave of mortgage frauds exposed by the property crash in the late 1980s.
Mr. Spence said: “Banks and other lenders face a serious threat of mortgage fraud from criminal gangs and greedy individuals. Worryingly, this is being perpetrated both by rogue solicitors and also by those who simply do not follow the rules put in place to guard against it.
“Mortgage fraud has gone from being a low priority before the recession to being one of the biggest areas of investigation now. It is expected to increase significantly during the next 12 months.”
Mortgage frauds increasingly involve the use of forged or stolen identity documents and credit cards, and internet-based sites to create fraudulent lending applications, Mr. Spence added.
For more information, please contact:
Brian Spence
Head of Forensics
Montpelier Professional (Manchester) Limited
0161 831 6464;