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Mortgage Fraud Cases Soar To A 22-Year High

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Mortgage fraud has nearly quadrupled in the first six months of 2010, KPMG's "fraud barometer" has found, with incidents of deception involving home loans reaching a 22-year high.

The accountancy firm's figures show there were 21 cases of mortgage fraud in the first half of 2010 with a value of £96m, compared to just 18 worth £24m during the same period last year. In fact, the figure for the whole of 2009 was just £77m.

And the company has warned that the picture is set to deteriorate over the coming months as the aftermath of the house-price boom, followed by the credit crunch, results in more incidents being unearthed.

The Financial Services Authority is aware of the problem, and cited the potential for fraudulent applications as one of the reasons for its decision to ban "self-certification" home loans, where applicants don't have to prove their income to obtain a mortgage.

KPMG said that its figures showed mortgage fraud now accounted for more than half of all the frauds committed against the financial sector in the first part of 2010.

One of the biggest cases was worth £50m, involving two solicitors who were charged with commercial mortgage fraud in relation to obtaining a money transfer by deception and dishonesty. In another incident, an estate agent was jailed for six years after attempting to pull off a £2m mortgage fraud by stealing the identities of two homeowners.

Full story:

http://www.independent.co.uk/news/business/news/mortgage-fraud-cases-soar-to-a-22year-high-2047169.html

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And from the FT:

Mortgage fraud cases rise as prices stagnate

The incidence of mortgage fraud being uncovered is rising as stagnating house prices and the economic slowdown expose loans that had been obtained through falsified information.

http://www.ft.com/cms/s/0/c3bff3b8-a323-11df-8cf4-00144feabdc0.html

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The accountancy firm's figures show there were 21 cases of mortgage fraud in the first half of 2010 ...

Only 21 cases? Doesn't sound so bad.

...with a value of £96m

:o Oh. That's an average of more than £4,570,000 per case. And we're worrying about individuals lying about their income.

More about this in the Scotsman (but focussing mostly on Scotland) Drop in Scottish fraud cases — but experts are braced for a fresh surge.

Edited by Scunnered

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What we need is someone to come up with a snappy media friendly catch phrase that could be picked up by the MSM in order to efficiently put across the issue to the public, such as:

deceivers credit

or

fraudulent advance

perhaps the use of bold graphics would emphasise it further.

….anyone?

Edited by Captain Cavey

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What we need is someone to come up with a snappy media friendly catch phrase that could be picked up by the MSM in order to efficiently put across the issue to the public, such as:

deceivers credit

or

fraudulent advance

perhaps the use of bold graphics would emphasise it further.

….anyone?

................. :rolleyes::blink:

PREDATORY LIAR LOANS - MASSIVE

FRAUD...

:(

Edited by eric pebble

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What we need is someone to come up with a snappy media friendly catch phrase that could be picked up by the MSM in order to efficiently put across the issue to the public, such as:

deceivers credit

or

fraudulent advance

perhaps the use of bold graphics would emphasise it further.

….anyone?

How about "We will all pay for liar loans"?

http://www.heraldscotland.com/comment/iain-macwhirter/you-can-bet-the-house-that-we-will-all-pay-for-liar-loans-1.1041383

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Was this unexpected?

Amazing how fraud is mostly discovered when property values decline, it's almost as if the banks didn't give a fook when house prices only ever went up.

If the mortgage repayments are being kept up, it is a sound loan built on a successful business model.

If the payments fall behind the fraud is discovered, but it is not the business model at fault.

Otherwise the regulators, politicians and journalists, who have all been asleep, would have to be blamed.

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Was this unexpected?

Amazing how fraud is mostly discovered when property values decline, it's almost as if the banks didn't give a fook when house prices only ever went up.

Nah!!! You don't say....?!?! :rolleyes::rolleyes::rolleyes:

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It is almost impossible to commit mortgage fraud nowadays unless a bank is open to it happening.

There is so much data available on personal finances that it is only those who wish to ignore it and look the other way who can allow utterly bad lending to go through.

The banking system is bent, incentivised to act that way and utterly unregulated in regards the mortgage area in particular - just a mish mash of best practice and self regulation.

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How is it fraud if the two parties are willing?

It must fall under some other category of legalese?

I would have thought that in fraud cases, both parties are willing. It's just that one party has misrepresented themselves to the other,

Peter.

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How is it fraud if the two parties are willing?

It must fall under some other category of legalese?

Well, technically, if I leave a skip full of cash on my drive overnight, then anyone who helps themselves is stealing.

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I would have thought that in fraud cases, both parties are willing. It's just that one party has misrepresented themselves to the other,

Peter.

'We are a sober financial institution who pay a lot of money to people in order that your money (as a saver) is only lent out to people with a realistic way of repaying it with interest'.

Suppose so..

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I would have thought that in fraud cases, both parties are willing. It's just that one party has misrepresented themselves to the other,

Peter.

But there must be some legal definition ...

For instance if our local slightly loony tramp asks me to borrow a fiver then he will sometimes get "lent" a fiver .. On two notable occasions I've been paid back ..

If he asked to borrow £1000 and told me a he had a job paying £60,000 a year and I lent him £1000 and it then turned out that he was "Misrepresenting" himself to me, I think it would be a very mean judge who sent him down for fraud .. I would suspect that "common law" would say I was an idiot to believe him and so

deserved to lose the £1000 ...

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How is it fraud if the two parties are willing?

It must fall under some other category of legalese?

Almost there but not quite. Fraud usually requires a willing victim. The victim's greed is what makes fraud work.

p-o-p

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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