The Financial Services Authority (FSA), the regulator for the financial industry and a name those taking their CeMAP exam will hear a lot, has called for mortgage advisors to help combat fraudulent mortgage applications and to report colleagues and clients who they suspect may be involved in any illegal activity.

Earlier this week, on the 28th August, the industry regulator published new guidelines.  The FSA has said it is keen to encourage cooperation and collaboration between the mortgage lenders, mortgage advisors and its own investigative team.

The regulator claims it has received valuable information from mortgage brokers previously and is hopeful that an alliance between them can lead to more fraudsters being caught and stopped.

Within the new guidelines, the FSA warns mortgage advisors to be watchful and keep an eye out for fraudulent documentation such as suspicious figures on a client’s income, trends between customers or suspicious employment details.

A few rogue mortgage brokers give law-abiding advisors a bad name and can damage the industry.

Director or financial crime at the FSA, Philip Robinson, said:

“Mortgage fraudsters tarnish the reputation of the industry as a whole, and there is no place in the market for firms who are – or have been – knowingly involved in mortgage fraud.”

So far this year, the FSA has banned more than 20 mortgage advisors and intermediaries.