Mortgage fraud red flags outlined

As a result FMA response and enforcement executive director Louise Unger has written to the executives of banks and non-bank deposit takers and alerted KiwiSaver schemes, industry associations and other regulators by sharing a list of red flags.

Unger says the FMA expects lenders will already be aware of mortgage fraud risks and have systems and controls in place to identify and mitigate these.

“We have compiled a list of ‘mortgage fraud risk indicators where fraud is being pursued for profit by third parties that we are aware of to assist lenders to ensure their systems and controls are appropriate to detect and prevent mortgage fraud.

“As you are aware, buying and selling property is likely to be one of the largest financial transactions that individuals make and will be significant to their overall financial position.