Chris Cummings, Director General of AMI, commented: "The current mortgage fraud crisis is leaving a shadow over the whole industry, damaging the reputation of good firms who put the needs of their clients first.
"The activities of organised criminals who specifically target mortgage intermediaries risks damaging the reputation of the mortgage advice community.
"AMI supports the FSA and recognises its attempt to drive out criminal activity. We will be sharing its views with our members".
In the letter, the FSA encourages more lenders to become involved in the FSA/CML voluntary initiative to combat broker fraud, welcomes the anti-fraud measures that the CML is taking, and emphasises the priority that the FSA is giving to investigating and, where appropriate, prosecuting organised mortgage fraudsters.
CML director general, Michael Coogan, commented: “The FSA rightly identifies that the best way to tackle mortgage fraud is for lenders and the regulator to work together, along with law enforcement agencies, to root out fraudsters.
“People may not think of lenders as victims of crime, but unless fraudsters are tackled then honest customers are the ones who end up paying more. We welcome the FSA’s focus and practical approach in this area, and we expect that even more lenders will now participate in the voluntary initiative designed to identify and investigate broker fraud.”
The CML has undertaken a range of work on fraud recently, in addition to the joint initiative with the FSA. As well as industry guidance and information, the latest CML initiative is a change to the standard instructions that lenders give to their conveyancers, to ensure that newly-built properties are accurately assessed for value.
The CML is also running a major conference on organised fraud in conjunction with CIFAS in the autumn which will help lenders to benchmark their own prevention measures on organised fraud, and ensure they are fully up to speed on the range of initiatives and best practice currently in use within the industry.
