Help detect fraud or risk being sidelined

14 June 2010

Over the past four years we’ve seen every possible lending market from high volume exponential growth to today’s constrained supply in which some individuals can’t obtain a mortgage and won’t be able to for some time.

Interacting with lenders in all these markets, one thing I’ve noted that has not changed is the high level of innovation. Sadly, I’m not referring to novel product types or underwriting processes but rather the ingenuity of fraudsters in attempting to defraud lenders.

Professionals are still intimidated and receive unsolicited offers of cash but that’s hardly new. But from mortgage mules to identity fraud, I’m surprised how few acknowledge that there are now many organised operations seeking gaps in lenders’ processes.

The irony is that the people behind these schemes could probably run legitimate businesses successfully if only they were prepared to play by the rules.

From a valuer’s perspective, if we are to add value for our clients the day job needs to go way beyond reporting the valuation figure. We are the eyes and ears of lenders.

Anecdotally, millions of pounds worth of suspect applications have been rejected this year following timely advice from our team, and no doubt other firms could say the same thing.

We all pay the price for fraud and lenders can’t be criticised for moving away from relationships that don’t help them in this area, be they valuers, solicitors or brokers.