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Mortgage Fraud 'is Funding Crime'

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from the bbc

High profits and low risk are attracting organised criminals to mortgage fraud, police have warned.

The Association of Chief Police Officers (Acpo) says property sales are also being used launder money made from drugs, trafficking and prostitution.

Average UK mortgage fraud losses are £700m a year and the figure is growing.

False valuations and bogus applications were among the methods used, said the intelligence report being sent to the financial industry and police forces.

"Organised mortgage fraud can take many forms and while difficult to measure accurately, remains a significant element of the UK's annual fraud losses," said Mike Bowron, Acpo lead officer on economic crime.

Safe houses

The report said that there was no evidence that mortgage fraud directly funded terrorist acts, but it could be used to fund safe houses.

Mortgage fraud can include false valuations by corrupt surveyors, especially on newly-built properties, allowing fraudsters to obtain loans much higher than the value of the house or flat.

Lenders can also be defrauded by bogus applications in other people's names by con-artists who then fail to make any repayments.

The Acpo warning comes in the same week as new identity checks were brought in to safeguard homeowners against property fraud.

The Land Registry is now demanding evidence of identity when an application - from parties not legally represented - is made to register a transfer, a lease, a mortgage or the discharge of a mortgage in paper form.

Tackling fraud

Mortgage fraud was generally committed by men in their mid to late 30s, with nearly half of cases (46%) found in London, according to the Acpo report.

In one case a fraudster made a profit of more than £10m

The Financial Services Authority has been cracking down on mortgage intermediaries working illegally and the Metropolitan Police are attempting to disrupt websites offering false documents.

But the report makes a series of recommendations to raise the profile of tackling the crime.

It wants an automated system for checking mortgage applications against official records such as passports, driving licences and benefits data.

It also calls for a Mortgage Fraud Bureau to be set up and guidance for lenders on identifying and preventing organised mortgage fraud.

The report's authors took evidence from police forces, housing groups, a range of government departments and 45 mortgage providers.

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Perhaps the FSA & the Met might want to check out activity in and around Thamesmead , if they haven't already, then a few other new builds in SouthEast London ;)

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from the bbc

High profits and low risk are attracting organised criminals to mortgage fraud, police have warned.

The Association of Chief Police Officers (Acpo) says property sales are also being used launder money made from drugs, trafficking and prostitution.

Average UK mortgage fraud losses are £700m a year and the figure is growing.

False valuations and bogus applications were among the methods used, said the intelligence report being sent to the financial industry and police forces.

"Organised mortgage fraud can take many forms and while difficult to measure accurately, remains a significant element of the UK's annual fraud losses," said Mike Bowron, Acpo lead officer on economic crime.

Safe houses

The report said that there was no evidence that mortgage fraud directly funded terrorist acts, but it could be used to fund safe houses.

Mortgage fraud can include false valuations by corrupt surveyors, especially on newly-built properties, allowing fraudsters to obtain loans much higher than the value of the house or flat.

Lenders can also be defrauded by bogus applications in other people's names by con-artists who then fail to make any repayments.

The Acpo warning comes in the same week as new identity checks were brought in to safeguard homeowners against property fraud.

The Land Registry is now demanding evidence of identity when an application - from parties not legally represented - is made to register a transfer, a lease, a mortgage or the discharge of a mortgage in paper form.

Tackling fraud

Mortgage fraud was generally committed by men in their mid to late 30s, with nearly half of cases (46%) found in London, according to the Acpo report.

In one case a fraudster made a profit of more than £10m

The Financial Services Authority has been cracking down on mortgage intermediaries working illegally and the Metropolitan Police are attempting to disrupt websites offering false documents.

But the report makes a series of recommendations to raise the profile of tackling the crime.

It wants an automated system for checking mortgage applications against official records such as passports, driving licences and benefits data.

It also calls for a Mortgage Fraud Bureau to be set up and guidance for lenders on identifying and preventing organised mortgage fraud.

The report's authors took evidence from police forces, housing groups, a range of government departments and 45 mortgage providers.

Is it too much to ask that income be based on records held by the Inland Revenue. Certainly this would put a stop on those self employed who muddle income with turnover rater than profit

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  • 293 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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