Mortgage fraud in the UK is expected to rise significantly in 2013 and could hit the highest level since 2009, noted global information service firm Experian.
43 out of every 10,000 loan applications are expected to be fraudulent next year, a 13 percent jump from this year and 26 percent rise from 2011. The bulk of fraudulent applications will likely come from first party fraudsters or borrowers who hide bad credit histories or misrepresent their employment statuses and financial circumstances.
Experian’s Fraud Index revealed that attempted mortgage fraud in Q3 2012 grew by six percent compared to last year. This translates to 38 fraudulent applications in every 10,000 versus 36 in every 10,000 during Q3 2011.
Moreover, 17 of every 10,000 loan applications received by lenders last quarter were found to be fraudulent – an increase of about seven percent compared to the same period last year.
“Almost 90 percent of mortgage fraud tends to originate from genuine individuals misrepresenting their financial situations,” said Nick Mothershaw, Director of Identity and Fraud Services at Experian in Ireland and the UK.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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