Fraudsters are expected to continue to produce more sophisticated fake documents while brokers and lenders embed changes brought about by the new regulations.
Peter Curran, director of strategic partnerships at Lloyds Banking Group said: “Spotting fraud is an ongoing challenge particularly in the face of increased paperwork.”
Lloyds said brokers need to be mindful of the challenges presented by increased volume and must not get swept away by a rise in demand for mortgage finance if they are not able to effectively manage the risks it will bring.
“We are all starting to see the green shoots,” said Curran.
“But we must not get complacent if we want to continue to deliver sustainable growth in the market.”
“Brokers need to consider at what point it is appropriate for them to take on administrative support to help them.
“Fraudsters may seize that opportunity amid the confusion and poor administration is a critical risk for all at the point of sale. History tells us that.”
Income and employment proof are the main areas which are expected to be exploited along with supporting evidence for the source of a deposit.
The advice was to not fall into the trap of thinking more documents in a file mean the risk of fraud will be circumvented.
He said: “Think about the plausibility, validity and authenticity of the documents – simply collecting paper will not help stop fraud.”
