In the paper “Mortgage Fraud in the UK” the author analyzes a growing problem in the sense that citizens want equity in their homes exceeding the loan on their assets. The housing market in the United Kingdom is experiencing a boom and fraudsters in the mortgage market…
While past research has focused on the personal motivating factors behind the commission of a white-collar crime, this particular article review several facets of the crime itself and explores the possible neighborhood risk factors that help attract the crime. From a national perspective, mortgage fraud seems to take place more frequently in neighborhoods that have low socioeconomic indicators. These links become even more distinct when the amount of fraud occurrences within the community is factored in as a variable. Upon disaggregating the data according to the region, the fraud indicator variables also display differing trend levels, perhaps indicating that as mortgage fraud practices begin to mature within an area, its community dynamics are likely to modify as well. In conclusion, mortgage fraud is on the increase in the United Kingdom and good measures need to be put in place to curb the crime. A delay in proactive and preventive measures in regard to mortgage fraud will greatly affect the economy and that the revenue collected by the government will reduce drastically.
Mortgages have a long history spanning from the 12th century but have been in common use in the UK housing sector since 1925. The word mortgage is said to derive from the French for a ‘dead pledge’ meaning “the one in which the borrower has to find ways to repay the loan” (Giles 2009). According to Giles (2009), the process of securing a mortgage can be defined as “Alien on a piece of land or property as security for a debt”. During late 2008 and early 2009, the downturn in the UK economy had a drastic impact on the once strong housing sector with house prices slumping and mortgage approval decisions declining (House Price Crash 2009).
A leading factor as to why lenders run into financial trouble was lending to applicants who had provided falsified information (BBC News 2009). ...
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(Mortgage Fraud in the UK Essay Example | Topics and Well Written Essays - 5000 Words)
“Mortgage Fraud in the UK Essay Example | Topics and Well Written Essays - 5000 Words”, n.d. https://studentshare.net/business/394177-mortgage-fraud-is-it-a-growing-problem-in-the-uk.
According to the research findings some of mortgages schemes that thrive in the economy include property flipping, equity conversion, identity theft, occupancy theft and second residence. As the rates of foreclosure and delinquency keep on soaring, the real estate market will remain sluggish while the mortgage fraud cases will keep increasing.
The author states that courts in England have not yet prepared to prescribe exactly what can be regarded as fraud. It is to be noted that the Serious Fraud Office (SFO) which was formed on the recommendation of the Roskill Report in 1984 had not taken into account the offense of fraud but recognized on an evocative manner.
From the author, we learn that these two had very conflicting character traits in that Kearns had learned about business from a very tender age, and as he grew, he acquired business skills that made him prosper. However, he always lived beyond his means which forced him to work even harder to get the money.
These bonds can become liquid when the firms unwind their positions due to losses. The other firms loss will create liquidity in the illiquid GSEs. The trends that affect the mortgage market is the losses and gains in the international markets as they are interconnected.
86(1) Low of property Act 1925 or, where the mortgage is created by A chare by deed by way of legal mortgage under s. 87, he has the same Protection, powers and remedies as if he had a legal term of years in the Property. The property consists of an occupied dwelling -house, and therefore a Court order for possession will be required (protection from eviction Act 1977).
The use of credit cards was popularized primarily by the Bank of America and Chase Manhattan in the 1950’s in cooperation with hotels. Capitalizing on the post-war economic boom and the growth of commercial consumer markets, credit cards are ascribed to be one of the major growth drivers of US.
The author states that when the lenders fail to adhere to the outlined underwriting guidelines, they increase the chances of risks involved in granting loans to individuals who are not capable of repaying the loans accordingly. Failure guidelines come in the form of deliberately refusing to apply the mortgage control procedures.
The bank investigation documented up to 14 communications that helped to find the root of the missing funds. They would eventually be led to the commercial director of the bank. The case revealed that he had committed