Mortgage Fraud increases for fifth consecutive year

Conveyancers and lenders are interested in the latest figures when it comes to mortgage fraud and Experian have revealed that fraudulent mortgage applications have risen for the fifth consecutive year.  2011 saw an 8 per cent increase in fraudulent applications for mortgage finance with 34 out of every 10,000 applications being attributed to mortgage fraud, compared to just 15 out of every 10,000 in 2006.

According to Experian the perpetrators of mortgage fraud are first parties, with over 90 per cent of mortgage fraud in 2011 attributed to individuals who misrepresented their personal information on applications.  Misrepresentation can be anything from providing a false employment status or financial information to attempting to conceal a bad credit history.  Experian’s UK&I Director of Identity & Fraud, Nick Mothershaw, commented:

“About 70 per cent of financial services application fraud in the UK fraud is down to first parties misrepresenting their circumstances, and the products such as mortgages and insurance that have seen fraud soar over the last year have a significant first party fraud element to them. This kind of fraud tends to originate from financially stressed segments of society.”

Will the latest figures make any difference to current and proposed lender panel reduction plans?  Should it?

Today’s Conveyancer, bringing you the latest conveyancing news and updates.