UK fraud: Blame the borrower, not the broker

by Caroline Dann24 Aug 2012

You've heard enough of low-doc fraud in Australia, so here's a bit of schadenfreude relief: the UK is a lot worse, and it's not the brokers who are being blamed.

Experian Hitwise found 39 in every 10,000 applications were identified as fradulent over the last quarter.

It found applicants themselves were inflating incomes and lying about their employment status.

“At the same time, we have also seen an increase in the number of properties where the use of the property is misdeclared, such as applying for a regular residential mortgage on a buy-to-let property,” it said.

 

COMMENTS

  • by Julia Swanee 24/08/2012 3:01:56 PM

    Looks like the UK has upheld the long & sound tenet of 'Buyer Beware', especially pertinent to borrowers obtaining loan products. In Australia, however, this sound tenet has been skewed by this current Federal Gov. to the nanny-state version 'Banker/Broker Beware'. Flawed new 'Responsible Lending' legislation has created a nanny-state litigation environment and reduced/negated responsibility of borrowers to ensure that they can/will repay a loan. What borrower does not understand that a loan needs to be repaid? The legislation needs to be reworked from the current nanny-state (' I'm the victim borrower') version and be renamed 'Responsible Borrowing' to create greater borrower accountability in relation to repaying a loan.

  • by Vic Broker 25/08/2012 1:20:27 AM

    The client will apply for a loan through a broker and obtain with the bank's approval and funding. Then 8-9 months later the bank will put the blame on broker should the borrower fails to make the repayments.Simply unjust!