The report shows the decrease was due to a drop in application frauds, which may well be linked to increasing unemployment.
It says lack of employment and concerns about future prospects may have been putting off those fraudsters who would have committed application fraud to obtain a larger mortgage than they could afford to repay – but would have taken out the mortgage with every intention of repaying.
Although the total number of application frauds identified in 2011 decreased compared with 2010, the number of cases where false employment details were provided almost doubled – up to 512 cases from 283 the year before.
Historically, mortgage application frauds have always seen a high level of falsification of documents – most commonly of payslips in order to make it seem that the applicant earns more than is actually the case.
CIFAS says now it seems that more applicants are having to lie about earning anything at all.
Meanwhile, the Slough Express reports that mortgage broker Tahir Malik has admitted obtaining services from Mortgage Next Network by deception in 2004 by concealing his convictions and bankruptcy, and giving a false former employer.
On top of those he pleaded guilty to two counts of fraud, one relating to a mortgage on his former home in West Wycombe in 2007 and the other to an attempted purchase of a property in Windmill Road, Slough, in 2008.