AMI responds to mortgage fraud speculation

The Association of Mortgage Intermediaries (AMI) has responded to comments made by Philip Robinson at the Financial Services Authority (FSA) about possible criminal activity in the mortgage market.

Richard Farr, Director of AMI, said: "The FSA has highlighted a potential issue of criminal gangs operating in the mortgage market. We welcome action by the regulator, together with the police to clamp down on this activity. Any brokers knowingly involved in criminal activity should be removed from the industry.

"However, we should clearly distinguish between possible criminal activity among a very small section of the industry and the vast majority of brokers who serve the interests of consumers impeccably. The numbers being touted in the press are pure speculation and are not corroborated by the FSA. The 200 mortgages under investigation are the same 200 that were announced by the FSA in December. The FSA has not confirmed how many brokers are under investigation in connection with these cases as there are quite specific rules about disclosure of firms that are being investigated.

"These are testing times in the mortgage market for lenders, brokers and consumers. There are major issues to be addressed in the market place around consumer confidence. We must also do our best to support consumers who may get into financial difficulty during these difficult times.

"It is important at this time that commentators choose their words wisely so not to make conditions worse, to the detriment of consumers. In the current climate we are calling for calm within the industry. We must remember that consumer confidence is at risk if observers seek to unduly escalate fears of fraud."