John Malone, group chairman of PMS, says that 70% of fraud is a result of the legal fraternity.
Speaking about fraud at today’s Mortgage Business Expo, he predicted that there would be a contraction in the number of solicitors in the sector.
He says: “No longer will you have the one minute mortgage – there will only be a handful of solicitors acting on behalf of lenders.”
Malone, who is the Association of Mortgage Intermediaries’ representative on the National Fraud Authority’s mortgage fraud forum, also warned brokers that fraud was being used to fund everything from terrorism to drug trafficking.
He added that it was vital that brokers spoke to clients face to face and advised against using leads inappropriately and as a result risk leaving themselves vulnerable to being exploited by fraudsters.