When receiving information from customers, there can be pressures to get it through to the lender, Morris said in a presentation at the 2018 Mortgage Administrator iVENT.
But it’s important to “stop, think, listen and consider the information” coming from the client, especially if it’s a new client, he warned.
Administrators and paraplanners must not let emotional pressure from estate agents or borrowers result in submitting information with doubts.
Any concerns with information should be raised with the lender or compliance department.
Fraud differences
Morris explained the varying ways fraud can happen during the mortgage process.
This includes false under-valuing or over-valuing a property, potentially with the motive of saving tax or creating more equity to get a product with a lower loan to value (LTV), for example.
It means administrators must look for the true value of the property using tools such as Rightmove.
Or an application could be from criminals trying to obtain money through a mortgage on a property they do not own.
Borrowers could also exaggerate salary or income, or fail to disclose loans to pass the stress rates on mortgages.
This is why figures from p60 or payslips must be verified and why it’s important to closely scrutinise bank statements, Morris said.
For example, if a client has recently had a significant pay rise from a family business, this should raise some alarm bells and result in extra checks on whether the salary increase is genuine, he added.
The borrower’s case versus their profile
Morris ran through a number of case studies that an administrator or paraplanner might come across and how to spot inconsistencies or anomalies that should be challenged.
Think about whether the case was face-to-face, which is less of a risk than telephone, Morris said.
For example, why would a borrower based in Newcastle choose to phone a broker based in Reading.
Consider whether documents look as they should and use tools such as those to help check the validity of passports.
Ultimately, administrators need to ask themselves how they feel about a case and check whether the application matches the profile, Morris said.
There is still time to register for tomorrow’s iVENT programme and you can catch-up with anything you’ve missed today.
