Lenders must not walk away from their responsibilities to identify fraud

From Nick Baxter

I read with interest the anonymous letter in the September 1 issue of Mortgage Strategy that commented on my article ‘Delinquents are running out of space’ (Mortgage Strategy August 25).

The mystery writer said lenders that turn a blind eye to suspect brokers are equally culpable. I agree.

As I stated in my article for the July 21 issue of Mortgage Strategy entitled ‘The watchers are not without blame’, we need to hound out brokers who submit fraudulent cases.

By the same token the lenders that turned a blind to such cases when house price inflation minimised risk and market share was the Holy Grail are not blameless. They should not be allowed to walk away from their responsibilities.

Nick Baxter

Director of mortgage promotions and partner at Baxters Business Consultants

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