Vic Jannels, chairman of All Types of Mortgages, says police enforcement in the mortgage industry highlights the failure of industry regulators to combat fraud.
Jannels says: “The appointment of a further 50 specialists by City police to focus on mortgage fraud, is a poor reflection on us as an industry and how we identify fraud.
“After more than 35 years in the industry, I can say that I believe most practitioners are of a high calibre and are totally honest professionals. Sadly, however, the dramatic growth of the industry on the back of a 15-year boom appears to have allowed criminals to take advantage of failures in our processes.”
Jannels says rather debate the scale of the problem, we should accept that any fraud is unacceptable and concede that the police having to step in simply serves to highlight failures.
He adds: “Bringing criminals to justice can only be in the long-term interests of mortgage professionals. All of us who are interested in securing a mortgage industry that applies best practice – rather than one that, by necessity, needs police action, should call on the FSA, the CML and all industry practitioners to support the police and drive out the criminals who tarnish our industry and ultimately cost us and the consumer money. Lastly, make the punishments, for those found guilty, meaningful.”