The Council of Mortgage Lenders’ (CML) efforts to tackle mortgage fraud has been recognised by the Financial Services Authority (FSA) in a public letter which admits the priority that the industry has given to fraud issues even in the current challenging market conditions.

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.

Michael Coogan, CML director general, said: “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.