A new whitepaper report on Mortgage Fraud has revealed that the majority of lenders surveyed consider ‘solicitor negligence’ to be the biggest fraud risk to their business.
The survey of more than 28 mortgage lenders shows that more than a third of the lenders fear ‘solicitor negligence’ but this can manifest in various forms and have serious consequences for the solicitor as well as the lender.
A recent case highlighting some of these potential consequences was Santander vs R A Legal, in which now-defunct law firm RA Legal were found to be negligent in unwittingly paying £150,000 of Santander’s money to a bogus law firm.
Furthermore, with the increasing use of technology in the financial and property sectors, fraudsters have become ever more sophisticated in undertaking mortgage fraud, even taking to cloning a law firm’s website in a bid to impersonate them. It is therefore more vital than ever for solicitors to remain vigilant to the threat of mortgage fraud and to have measures in place to combat it.
For insights into the mindsets of more than 28 decision makers from some of the largest mortgage lenders in the UK, register to download a copy of the whitepaper: