Currently viewing the tag: "mortgage fraud"
Bank Of Scotland Accused Of Mortgage Fraud

Bank Of Scotland Accused Of Mortgage Fraud

Northern Ireland Attorney General Accuses Bank Of Scotland Of Committing Mortgage Fraud

John Larkin QC, Northern Ireland’s Attorney General, has accused the Bank of Scotland of committing mortgage fraud in relation to the way that the bank has treated customers who fell behind on their residential property mortgages.

An earlier court hearing had previously ruled that the Bank of Scotland had unfairly re-billed some of their own customers who had fallen into arrears with their mortgage payments.

The Bank of Scotland had decided to appeal the verdict of the earlier court hearing but decided to drop that appeal on Monday morning. The Bank of Scotland then rejected Mr Larkin’s claims, saying it strongly takes issue with the allegations.

A barrister for the bank, Stephen Shaw QC, said Mr Larkin’s view of mortgage fraud was “based on a misapprehension”.

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 Avoid Committing Mortgage Fraud

Avoid Committing Mortgage Fraud

How To Guard Against Mortgage Fraud

Following fresh warnings from the National Fraud Authority about the rising level of mortgage fraud in the UK, lenders want more done to protect their interests.

Mortgage fraud was a widespread problem before the financial meltdown and collapse of the property market back in 2007/8 due to the availability of self- certification mortgages with buyers, brokers and mortgage advisers able to ‘self-declare’ earnings with little, if any, proof required by an industry too busy to carry out proper rules and checks on applicants.

Mortgage fraud costs the industry around £1 Billion (GBP) a year, leading the Financial Conduct Authority to want to instruct mortgage lenders to better acquaint themselves with the solicitors they work with.

The new stricter mortgage rules introduced in the Mortgage Market Review in April 2014 are intended to reduce the number of people who attempt to make false claims and self-certification mortgages are now a thing of the past.

However, this won’t stop mortgage fraud or prevent homeowners and property investors from being a victim of identity or registration fraud.

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Quick Property Sales Fraud Risk

The FSA has warned homeowners in financial difficulties who are looking to sell their home fast to beware of committing fraud.

FSA Warns of BMV Property Fraud

FSA Warns of BMV Property Fraud

The financial regulator says it has evidence that some below market value (BMV) or distressed property sales may involve fraud, where the buyer (a company or an individual), asks the selling homeowner to state that the property has been sold for its full open market value, rather than the agreed purchase price.

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Mortgage fraud is estimated to cost the UK economy £1 Billion (GBP) every year, according to the National Fraud Authority (NFA).

MyPropertyPowerTeam.com takes a look at the steps some bridging lenders are taking to mitigate fraud and how they vet the solicitors and valuers that they work with.

It is important to ensure that all mortgage lenders’ procedures and vetting measures are consistently in check, particularly for those lenders who outsource their professional services regularly.

In light of the increasing number of products and services being offered by lenders entering the short-term lending sector, the FSA are keeping a close eye on any poor practices.

But, are the systems and controls in place to detect and prevent mortgage fraud robust enough in the industry?

Banks and mortgage lenders are being extremely vigilant when looking at how vulnerable their own systems and controls could potentially be and in what places they can be improved.

The FSA are also keen to crack down on poor practices and in December 2011, they published a guide, entitled Financial Crime: A Guide For Firms.

This document provides guidance to firms on steps they can take to reduce their financial crime risk and is designed to help firms adopt a more effective, risk-based and outcome-focused approach to mitigating any financial crime risk, which includes examples of good and poor practice.

Many Bridging lenders have made substantial investments in ensuring that they mitigate fraud and are using both automated systems and human intervention to detect fraud.

Good bridging companies choose solicitors that they deal with very carefully and will have carried out due diligence to mitigate the risk of solicitor fraud. 

New systems actively search and cross reference data from all lender members and multiple government agencies for any indications of fraud including identifying and investigating potential fraud as well as money laundering and the identification of Politically Exposed People (PEP).

Want to avoid Mortgage Fraud?  Find a reputable mortgage broker here

After opening 37 bank accounts using in excess of 23 aliases, Damien Martin James succeeded in fraudulently obtaining more than £64,000 from different High Street banks and mortgage lenders.

James, originally from Somerset, acquired a £250,000 mortgage from a High Street bank and opened accounts with Royal Bank of Scotland, HSBC and Lloyds TSB using several different passports.

The Bournemouth Echo reported that James had fallen into mortgage arrears and had overdrafts ranging from £246 to £3,944. Whilst sentencing, Judge John Harrow said in court: “You are a thoroughly dishonest man. You gave false details to the Chelsea Building Society to gain £211,000, fell into arrears and the property had to be sold and there was a loss to them of £60,000.”

James pleaded guilty to 10 counts of fraud and was imprisoned for four years and two months.

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