Instruction taking

Question 1

Name two ways criminals can exploit weaknesses in lending and conveyancing systems to gain illegitimate financial advantage from the UK Property Market.

Answer 1

1. Opportunistic action using misrepresentation of income or property value to obtain greater loans than entitled to, or
2. Organised crime syndicates overvaluing properties, using false identities and failing to make mortgage repayments.

Question 2

What principles of the SRA Handbook are relevant to mortgage fraud?

Answer 2

Principle 1 - act in a way that upholds the constitutional principle of the rule of law, and the proper administration of justice
Paragraph 6 - conflict of interests and confidentiality/disclosure

Question 3

What is mortgage fraud?

Answer 3

Where individuals defraud a financial institution or private lender through the mortgage process.

Question 4

What incorrect information may a client give in order to secure a higher mortgage?

Answer 4

1. Identity
2. Income
3. Employment
4. Debt obligations
5. Sources of funds
6. Value of Property
7. Price to be paid and whether any payments have been made or will be made between seller and purchaser