Borrowers committing fraud by hiding sub-prime past
Share
Borrowers are attempting to mask their adverse credit history by not disclosing previous addresses, shows the latest Fraudscape Bulletin from CIFAS – the UK’s fraud prevention service.
It says during the first six months of 2011, there has been a serious shift in the type of mortgage fraud being committed.
The kind of frauds first seen during the housing boom are no longer being uncovered – with more frauds now bearing the hallmarks of individuals struggling to meet lenders’ current requirements.
In the first six months of 2011, the most common reasons for a mortgage fraud being recorded included the failure to disclose a previous address in an attempt to hide an adverse credit history, false proof of income and false employment details.
Overall, its figures show there were 111,504 confirmed frauds to the National Fraud Database by CIFAS members in the first half of 2011; an increase of 10% compared with the second half of 2010.
Identity frauds have remained at nearly one in two of all frauds recorded, with a further 10% of frauds involving the illegal hijacking of a victim’s account.
Frauds involving the fraudulent misuse of an account or facility have risen to their highest levels since 2009, and account for a staggering 24% of all frauds.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
Readers' comments (5)
Maurice Edgington | 26 Jul 2011 2:48 pm
I am amazed that people can get so far with a mortgage application by hiding addresses. In every credit report I have seen, this year alone, multiple addresses are shown. Plus anyone with past adverse credit is sure to have this on their credit file. Something very strange is going on!
Unsuitable or offensive? Report this comment
Anon | 27 Jul 2011 11:44 am
Taken to its Nth degree all mortgage applications are fraudulent. Every date line is probably a month or two out - ie time with current employer 3 years 2 months when it is in fact 3 years and 1 month etc etc etc etc
Unsuitable or offensive? Report this comment
Anonymous | 27 Jul 2011 7:35 pm
Failing to disclose a previous address has always been what Lenders use to cancel applications. And too right as the lazy broker always wants the lender to come up with reasons not to lend as they cannot stand up to a client. This is not the majority of brokers
However the last comment that all applications are fraudulent is a joke.......Stand up in court and say you have known someone for 3 odd years and it is fine. When a broker puts 3 years just to pass the credit score (or hope to) thats fraud, as more often than normal, the broker sends in payslips with a start date later than stated on the application.
If brokers got to know their customers and asked the right questions with the client, and not rely on others maybe this industry might come back.
Unsuitable or offensive? Report this comment
Grey Haired Underwriter | 29 Jul 2011 12:26 pm
I suspect that many of these applicants carry out a search based on a sole bureau but don't realise that what doesn't show on one may well show on another. What really irritates me however is that they think that the lender is so stupid it won't find out
Unsuitable or offensive? Report this comment
Anonymous | 29 Jul 2011 2:28 pm
Basically, a self serving press release by CIFAS that doesn't match up to what I experience in the real world. Why don't they put everyone in prison and force us all to prove our 'innocence'?
Unsuitable or offensive? Report this comment