1In June 2011 the FSA published the findings of its thematic review into how mortgage lenders in the UK were managing the risks mortgage fraud posed to their businesses. The project population of 20 banks and building societies was selected to be a representative sample of the mortgage lending market. The firms the FSA visited accounted for 56% of the mortgage market in 2010.
1The FSA’s review found the industry had made progress coming to terms with the problem of containing mortgage fraud over recent years. Defences were stronger, and the value of cross-industry cooperation was better recognised. However, the FSA found that many in the industry could do better; the FSA were disappointed, for example, that more firms were not actively participating in the FSA’s Information From Lenders scheme and other industry-wide initiatives to tackle mortgage fraud. Other areas of concern the FSA identified were to do with the adequacy of firms’ resources for dealing with mortgage fraud, both in terms of the number and experience of staff; and the FSA identified scope for significant improvement in the way lenders dealt with third parties such as brokers, valuers and conveyancers.