View more on these topics

Complying with guidelines comes with £400,000 price tag

The total cost of complying with the Financial Services Authority’s mortgage fraud guidance could hit almost £400,000 a year for mortgage firms.

The regulator has published a cost-benefit analysis of how much it would cost firms to implement proposals in its Mortgage Fraud Thematic Review.

It breaks down the estimated cost into six sections. Assessing when a deterioration in employees’ finances could make them susceptible to fraud could cost between £150 and £132,000 per affected firm.

Engaging in cross-industry fraud initiatives will cost between £6,500 and £10,000 and reducing the size of third party panels will see lenders paying between £750 and £11,220 a year.

Other costs include systems that can check brokers are not gaming a lender’s system which could mean firms shelling out £300 to £10,000 while having underwriting processes that can identify higher fraud risks is estimated to cost between £300 and £212,500.

It is also estimated that improving management information will cost between £450 and £5,000

Recommended

Thumbnail

Employer iPMI responsibilities could continue to escalate, says Jelf

New laws in Dubai will put the burden of providing international private medical insurance (iPMI) firmly on the shoulders of the employer in order to maintain the country’s leading healthcare facilities. With 10,000 UK nationals having moved to the country since 2007 and only 16.5 per cent of the total 8.2 million people living there being Emiratis, Jelf Employee Benefits believes this move was inevitable and employer responsibilities could continue to escalate in future.

Newsletter

News and expert analysis straight to your inbox

Sign up