‘Brokers will not do business with fraud’
Henry Ejdelbaum, managing director of corporate adviser ASC Finance for Business, said a legitimate adviser would steer clear of a fraudulent lender.
Speaking after it was revealed that only seven brokers have reported suspected fraudulent activity from lenders in the past seven years, Mr Ejdelbaum said: “The main responsibility for an adviser is to the client.
A broker would just not do business with these people. If there is a guy sailing close to the wind he may do deals elsewhere. A bank cannot on its own be fraudulent. A banker needs at least a client or solicitor.”
The National Fraud Authority, responsible for cracking down on all types of deception, said mortgage fraud was costing the UK £1bn a year. The FSA said it also has other ways for brokers to report fraud, such as its communications centre and whistle-blower line. Its Annual Fraud Indicator for 2011 said:
“The mortgage market has changed significantly in the last couple of years. There has been a decrease in the volume and value of mortgage products sold, falling by 44 per cent from £254bn in 2008 to £144bn in 2009, as well as changes in the types of products available and a number of lenders withdrawing from the market. Despite these changes, the mortgage industry is still loaning about £12bn each month, making it an attractive target for fraudsters.”