Conveyancers 'must do more' to tackle mortgage fraud

Conveyancers should take on a more pro-active role in tackling mortgage fraud – or risk losing business. 

The call has come from Eddie Goldsmith, chairman of the Conveyancing Association.

He says it is clear that if conveyancers don’t take action, lenders will simply continue reducing their panels.

In 2010, in an attempt to reduce fraud, a number of major lenders announced a move to reduce the number of conveyancing firms on their panels.

Goldsmith believes it is likely that further culls will take place and the firms at risk will be those which cannot demonstrate that they have undertaken all relevant procedures to minimise mortgage fraud.

Goldsmith said: “The CA believes that the industry needs to recognise that we don’t have a divine right to be on lenders’ panels and therefore need to accept that lenders must manage their risks to reduce fraud.

“The issue of mortgage fraud isn’t going to disappear overnight and no-one is naive enough to believe it can be fully eradicated.

“However, the CA and its members are committed to working with brokers and lenders to improve the situation.

“If our industry works together to raise standards and improve due diligence, this will go a long way in building the confidence of lenders and consumers in the integrity of services provided by the profession.”