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Tight deadlines mean fraud signs are being missed

The ability of lenders’ underwriting teams to identify fraudulent mortgage applications is being undermined by excessively tight deadlines, the Financial Services Authority claims.

In its Mortgage Fraud Thematic Review it says it is concerned underwriting staff at some lenders are stretched and a rise in lending volumes could aggravate weaknesses.

Edna Young, strategy specialist for financial crime and intelligence at the FSA, says: “We found some staff were required to meet tight processing targets and some were unable to identify common warning signs of fraudulent applications such as round figure salaries.”

She also raised concerns about the suitability of underwriting staff, pointing out that many lenders employed high numbers of inexperienced underwriters, while others used sales staff to gather evidence of applicants’ income.


FSA is right when it says underwriters have no experience

The FSA finally got something right last week when it criticised lenders’ underwriters for being overstretched and underqualified. As a broker who has worked at a major bank and as an underwriter, I know many underwriters and all they say confirms they have little experience. They are just taught to complete a checklist. This is […]

New broker poaches sales boss

Ian Baker, sales manager at John Charcol, is to join Capital Private Finance, the joint venture between Countrywide and Mortgage Advice Bureau. He will join as sales director and report directly to the board. Baker has been given the task of building up a team of advisers. Capital Private Finance is due to launch in […]

UK: mid-year review and outlook

By Mark Martin, manager of the Neptune UK Mid Cap Fund, and Scott MacLennan, manager of the Neptune UK Opportunities Fund H1 2014• Equity markets continued to show strength: despite a strong rally in 2013 driven by a market-wide re-rating, equity markets continued to generate positive returns for investors. Economic activity continued to be stimulated […]


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