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Mortgage fraud cases soar to a 22-year high

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Comments

  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    The lenders should make proper checks and not take the applicants word - they only have themselves to blame.
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    Interestingly Brit, Scottish Fraud Cases halved
    Fraud cases in Scotland 'halve in a year'

    http://www.bbc.co.uk/news/uk-scotland-10908130
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 9 August 2010 at 12:01PM
    Fraud is fraud. Whether thats stating 32k instead of 29k or saying 56k instead of 29k.
    Orpheo wrote: »
    I suppose stealing a DVD from a supermarket is OK? Or taking stationery home from work?

    Fraud is fraud. Fraud is theft. When you steal you are taking somebody elses work. £5million, £5k, or £5.
    please see below
    "Let Him Who Is Without Sin Cast the First Stone'"
    J.Christ
    1 B.C.
    ..........................
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    edited 9 August 2010 at 12:00PM
    chucky wrote: »
    i've no idea Graham of the real numbers - it went on we all know it did.

    i'm not sure if lying about saying that you earned £32k instead of £29k on your mortgage application should be classed as fraud. it's wrong but not sure it's fraud.

    i see fraud as stealing money from people and even faking valuations to get more money or using other peoples identity..

    AIUI, fraud is 'obtaining pecuniary advantage by deception'. If you lie about your income to obtain a larger mortgage you have deceived and been able to borrow more as a result so strictly speaking that's fraud.

    The chances of being caught are small. I guess it's the mortgage equivalent of being prosecuted for smoking weed as a student: it happens but you've gotta be very unlucky.

    @ Orpheo, fraud isn't theft, it's fraud.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    chucky wrote: »
    is that? it 21 cases of mortgage fraud.

    come on Brit, you can do better than that. we get one of these smileys icon8.gif and it's only 21 cases of fraud. i was expecting much higher!!

    I very much doubt that 21 cases means 21 mortgages. The article says, "there were 21 cases of mortgage fraud in the first half of 2010 with a value of £96m".

    that would be a group of very expensive mortgages!
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    chucky wrote: »

    i see fraud as stealing money from people and even faking valuations to get more money or using other peoples identity..

    obtaining a pecuniary advantage / a money transfer by deception, it might well have been at that time.

    If the deception was material, then saying you earned £31k when you earned £29k might or might not have been material, depending on the multipliers.
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • Dirk_Rambo
    Dirk_Rambo Posts: 387 Forumite
    brit1234 wrote: »
    Mortgage fraud cases soar to a 22-year high


    i can believe it. there was a estate agent up the road from me who was pulling all sorts of dodgey strokes. maybe that why he got closed down
  • Most of the cases discovered have been muttiple applications form individual brokers often small One Man bands. Additionally they have often been the brokers own applications on more than one property falsely declaring his income o rthat of others. There have been regular reports over the last 3/6 months of more stringent policing by the FSA uncovering these "old" cases and reported in Mortgage Strategy.

    The last 18 months has seen the FSA taking a more proactive policing policy rather than ensuring that corect compliance procedures were in place correctly applied. Lenders have similarly been actively assisting the FSA where suspicions have been raised.

    Having worked for a Lender during this period on a daily basis face to face with INTERMEDIARIES I am not at all surprised at this revelation and as others have commented 22 cases will only be the tip of the ice berg. Once interest rates start to rise or typical BTL properties values fall further making them difficult to refinance and rents dont cover the mortgage many more are sure to come to the surface
  • morag1202
    morag1202 Posts: 536 Forumite
    I very much doubt that 21 cases means 21 mortgages. The article says, "there were 21 cases of mortgage fraud in the first half of 2010 with a value of £96m".

    that would be a group of very expensive mortgages!

    This might have been one of them.
    Murphy was an optimist!!!
  • Generali wrote: »
    AIUI, fraud is 'obtaining pecuniary advantage by deception'.

    Lots of different types of fraud, that was one of them.
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
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