Just an update
Monday 17th June
This week's headlines:
We will soon be announcing an exciting new partnership with one of the UK’s largest regulated providers of wills and estate planning services.
The partnership will enable you to refer your clients for a free legal review to ensure they have the right legal solutions in place to protect their future and that of their loved ones.
What you can expect:
A simple referral process, with the option to book an appointment or request a call back on behalf of your client
Competitive commission rates
Peace of mind that your client will receive excellent service from a well-known and trusted provider
Regulatory protection from the Solicitors Regulation Authority and the Financial Services Compensation Scheme
Full training and support resources
Further information will be sent out in due course, including details of training sessions which will give you all the information you need before the launch!
The Mortgage Works introduces its personalised Portfolio Review
TMW has launched a new tool designed to help you and your clients make the most of their portfolio. It comes with a number of benefits:
It'll give a clear view of future lending potential with The Mortgage Works.
You can have confidence that the Review is in line with TMW’s criteria, affordability and exposure policies.
It'll save you time gathering details about your client's portfolio before their next application.
Find out more HERE
How to prevent mortgage fraud: A broker’s guide from Coventry for
Intermediaries
In the UK property sector, a staggering 1.1 million cases of property fraud were reported between April 2022 and March 2023, a 15.3% rise compared to the same period the year previously.
There’s also a disturbing rise in the number of borrowers becoming vulnerable to mortgage fraud, up by around a third, and even straying into it themselves by overstating their incomes. The consequences for those caught in the act could be severe and could lead to prosecution and risk of defaulting on loans they cannot afford, making it more difficult to borrow again in the future.
This blog should serve as a practical guide to help brokers protect their clients.
Know your client
A broker’s initial meeting with a client represents the best opportunity to risk assess and potentially shut down fraud before it escalates. Where possible, brokers should organise at least one inperson meeting to establish the legitimacy of the client in front of them and what to expect when they come to submit their papers. This also extends to third party introducers and gauging their credibility.
Assessing documentation
When reviewing documentation that supports a mortgage application, be on the lookout for tell-tale signs of forgery, such as oversimplified payslips, rounded figures or inconsistent formatting compared to what is typical of genuine documents.
It’s important to identify any inconsistencies in a client’s story, so compare their reported job and what they claim to earn with why they want to buy a property. From time to time, a broker will need to make a plausibility judgement. If the falsification of documents is difficult to detect, don’t hesitate to ask the client for more information, and keep a good record of communication.
Stay a step ahead
Brokers must not only be aware of the various types of property fraud but also have some street smarts as to the tactics and trends popular among organised criminals to try and deceive lenders.
Using digital tools to alter documents is very common to try and achieve a more competitive mortgage product.
Deposit redirection fraud
But it’s not just lenders that are being targeted. Deposit redirection fraud has many innocent homebuyers on edge. In these schemes, criminals pose as solicitors and con homebuyers into transferring deposits into their bank accounts. Solicitors rarely change their bank account details and will tell clients in advance when they need to transfer their deposit monies.
Know your response and how to notify lenders
If in doubt, call a halt to the mortgage application process immediately and reach out to the lender to flag your concerns. This will allow the lender to conduct an independent review.
As the first line of defence against mortgage fraud, brokers must continue to maintain their high standards of due diligence.
Coventry for intermediaries has previously hosted webinars on identifying false documentation and has recently released a free guide to help brokers prevent this potentially devastating type of fraud.
CoffeewithCompliance–Episodes5,6&7now available!
GoodMorningEveryoneandWelcometothenextepisodesofournew series-CoffeewithCompliance!
Eachweek,we'lldiveintothe'why'sandwherefores'ofCompliance, sheddinglightonaspectsyoumaynotbefamiliarwith.We'llbe featuringvariousmembersofourComplianceteam,aimingtomakeyou moreacquaintedwiththemandtherationalebehindourrulesand procedures.
Thisseriesisn'tjustaboutsharingunknownfacts;it'salsoabout clearingupanyconfusionyoumighthave.
Soputthekettleonandlet'sbrewsomeknowledgetogether! ClickontheEpisodetitletoview:
Episode5–IntroductiontoSQSandwhyJMdiffertoOpenworkwith somestandards Episode6–CommonfailtrendsforMCOB Episode7 -CommonfailtrendsforICOB