In its Mortgage Lenders’ round-up for December the FSA says that so far in 2010 25 lenders have reported cases of suspected or proven fraud under its Information from Lenders scheme.
It says: “This has resulted in us opening cases on 48 mortgage brokers in the last six months. In the overwhelming majority of these cases there was a suspected or proven fraud within the last 12 months, which shows that mortgage fraud has not gone away.”
It also highlights the launch of an information gathering pilot by anti-fraud specialists National Hunter which will run for three months.
The FSA adds that it is committed to individual registration despite the delay until 2012/2013.
It says the delays are a result of an ongoing reprioritisation of work – particularly around the regulatory reform agenda.
It adds that once the rules are finalised, it will give firms sufficient time to put changes in place to comply with the approved persons’ regime, as with any new rules.
It also comments on the distribution and disclosure paper and says that 30% of all mortgage sales are information-only with no checks to ensure the consumer’s choice is appropriate.
It says: “We believe this is not delivering adequate consumer protection and our proposals are designed to address this.”
On disclosure it says it is focuses on key information rather than the method the information is conveyed.