But this is an ongoing challenge with lenders needing to be constantly aware of events that may create new or increased risks.
One such current risk is that the Help to Buy scheme may fuel mortgage fraud, as vocalised by DS Oliver Shaw of the City of London police who said lenders may relax requirements as their exposure is reduced by the scheme’s guarantees.
He is also concerned about potentially fraudulent brokers and solicitors. Another growing fraud risk is a purchaser obtaining a standard mortgage for a buy-to-let property.
A lender does not want the situation where it might fall victim to potentially more sinister forms of mortgage fraud, often involving several people and with deliberate criminal intent to defraud. There are several cases of more extreme instances of mortgage fraud which have been through the UK court system of late.
These involve a large number of people accused of conspiring to defraud mortgage lending companies while in other cases those in senior positions at lenders and broker firms are also suspected of fraudulent behaviour.
So, the message to mortgage lenders is clear, look at risk and have systems in place to improve your supplier oversight, whether that be for borrowers, valuers, brokers, solicitors, bankers.
Make sure you know as much as possible about who is looking after your client. Mortgage fraud can never be eliminated, but do as much as you can to safeguard your lending to minimise the danger of you being inadvertently caught up in it.
Mark Blackwell is managing director of xit2
