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MMR should reduce mortgage fraud

The Financial Services Authority says the Mortgage Market Review should lower mortgage fraud because lenders will be responsible for carrying out more checks on the mortgage application.

When questioned by Treasury Select Committee member Teresa Pearce today about the MMR, Martin Wheatley, managing director of the Conduct Business Unit at the FSA, told her: “We are requiring lenders to take responsibility.

“In the past they relied on third parties and agents to carry out checks, we are now putting the obligation back onto lenders and that should allow them to carry out better checks against potential fraud.”

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  • Glen McKeown 14th March 2012 at 8:41 pm

    Ensuring that there will now be two levels of checks should help to reduce the unemployment figures mentioned elsewhere. Doubt if it will reduce the cost of mortgages though.
    If there is problem increase administration – has anybody completed any research to see if there is a material statistical relationship between the two events – or is it merely a knee-jerk reaction?