Half of mortgage brokers believe lenders could significantly reduce cases of mortgage fraud by utilising technology, data from EDM Mortgage Support Services shows.
Of the crimes that could be reduced according to brokers, lying about occupancy to gain a buy-to-let mortgage is the most common (46%), followed by ‘income or employment falsification’ (44%) and ‘concealing debts and liabilities’ (39%).
Currently just 17% of brokers think lenders are implementing enough technology to deal with fraud, while one-third (35%) said the Mortgage Market Review has not helped in dealing with such crimes.
Joe Pepper, EDM MSS’ managing director, said: “The argument for more use of electronic data and communication is getting stronger, not just as a result of the greater administrative burdens resulting from MMR but other issues too, such as tackling fraud.
“There is already some use of electronic data exchange – more than a third of the brokers in our survey say they between 81% and 100% of the information/correspondence they exchange with lenders is done so electronically.
“But there is potential for this to be much greater and more extensive use of quality online systems would help the mortgage industry deal much more efficiently with large amounts of data and correspondence.”
EDM Group, whose customers include Nationwide, Virgin Money, Santander, Bank of Ireland, Barclays and Lloyds Banking Group, enable lenders to exchange data with third parties such as surveyors, solicitors, estate agents and asset managers.