The Times adds a sobering postscript to an item in today’s edition headed Lenders face huge hit on mortgages fraudulently obtained by crime gangs. It concludes: “Lawyers [say] that mortgage fraud could be difficult to prosecute, because many fraudulent borrowers abscond before the fraud is discovered. Lenders and insurers are therefore likely to pursue legal action against solicitors and brokers who were either complicit or failed to conduct sufficient checks.”
The Law Society’s Practice Note on Morgage Fraud (issued in March 2008) should be considered as an essential read for all property lawyers. It gives sensible advice on how to stay alert to possible fraud. See also the Lenders’ Handbook changes for new build properties applicable from today relating to the new Disclosure of Incentives Form for newbuilds and conversions.