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CML and FSA in fraud alliance

Two of the UK's leading financial associations have joined forces to fight mortgage fraud.

The Council of Mortgage Lenders' efforts to tackle mortgage fraud has been recognised by the Financial Services Authority today, in a public letter which recognises the priority that the industry has given to fraud issues even in the current challenging market conditions.

The CML has undertaken a range of work on fraud recently, in addition to the joint initiative with the FSA. As well as industry guidance and information, the latest CML initiative is a change to the standard instructions that lenders give to their conveyancers, to ensure that newly-built properties are accurately assessed for value.

The CML is also running a major conference on organised fraud in conjunction with CIFAS in the autumn which will help lenders to benchmark their own prevention measures on organised fraud, and ensure they are fully up to speed on the range of initiatives and best practice currently in use within the industry.

A spokesperson for the FSA commented: "The FSA is encouraging more lenders to become involved in the FSA/CML voluntary initiative to combat broker fraud and welcomes the anti-fraud measures that the CML is taking".

The FSA is prioritizing mortgage fraud and pouring resources into investigating and - where appropriate - prosecuting organised mortgage fraudsters.

CML Director General Michael Coogan added: "The FSA rightly identifies that the best way to tackle mortgage fraud is for lenders and the regulator to work together, along with law enforcement agencies, to root out fraudsters.

"People may not think of lenders as victims of crime, but unless fraudsters are tackled then honest customers are the ones who end up paying more.

"We welcome the FSA's focus and practical approach in this area, and we expect that even more lenders will now participate in the voluntary initiative designed to identify and investigate broker fraud."