FSA sets out its approach to tackle mortgage fraud

The Financial Services Authority (FSA) has set out its approach for tackling mortgage fraud, as part of the UK's wider response to the threat.

The approach, which will make it harder for criminals to get away with committing mortgage fraud, includes:

Targeted visits to 200 mortgage intermediaries to assess their financial crime systems and controls;

Increasing intelligence received from lenders by streamlining reporting processes and providing more clarity on the information needed;

Enhancing the way intelligence is used in supervising firms and bringing about enforcement actions. The FSA has banned 17 individuals and levied fines, including a £129,000 fine against a broker, for mortgage fraud in the last 12 months;

Strengthening engagement with other regulators and law enforcement partners including the National Fraud Strategic Authority (NFSA);

Encouraging improved information sharing and intelligence analysis in the industry; and

Reviewing the role of the Approved Persons regime as it relates to mortgage intermediaries including brokers.

Philip Robinson, Director of Financial Crime and Intelligence at the FSA, said: 'Mortgage fraud is a serious and widespread problem. We have set out our approach and expect the industry to do its part in tackling this menace. Brokers should make sure that they provide suitable advice and that their businesses cannot be used for the purposes of committing fraud. Lenders must also have in place systems and controls to identify and reduce fraud, and continue to provide us with the intelligence which is key to success in this area.'