In the paper “Mortgage Fraud Against Lenders: A thematic review of lenders’ systems and controls to detect and prevent mortgage fraud” published today, the regulator said firms that did not subject third party panel members to ongoing review were not up to scratch.
It also said some lenders had panels that were “too large to be manageable” and that failing to identify “dormant third parties” on panels was poor practice.
Firms that rely solely on the FSA register to check mortgages brokers was highlighted as poor practice by lenders.
While lenders that rely on division sales managers to oversee brokers have “not considered how to manage conflicts of interest that may arise”.
