Borrowers pushed to fraud
In its Fraudscape Bulletin, CIFAS said that borrowers are failing to disclose a previous address in an attempt to hide an adverse credit history, false proof of income or false employment details.
CIFAS has warns individuals against attempting to defraud mortgage lenders in these ways, and urges businesses to continue their due diligence against such attempts.
The types of fraud seen during the housing boom are no longer being uncovered said CIFAS. The change in the reasons for recording mortgage fraud indicated that this type of fraud now has different underlying motivations. For instance CIFAS cited fear of unemployment as a pressure for both borrowers and mortgage salesmen to manipulate a customer’s salary in order to obtain a higher mortgage.
John Malone, chairman of PMS, said: “These revelations are not new and this type of behaviour has been discussed in the past. The CIFAS report does reflect what is happening therefore it’s a further timely reminder to all intermediaries that they must be on their guard even more so when dealing with clients that they’ve not had a previous relationship with.”