Mortgage introducers must help to satisfy lenders’ growing appetite for due diligence across the industry, according to Goldsmith Williams.
The law firm says that latest evidence suggests that banks are increasingly asking buyers for details of their solicitors before making a mortgage offer, indicating a greater desire among lenders to clamp down on mortgage fraud by using only trusted panel solicitors.
The issue has become so prevalent that many larger firms are now being called upon to act on behalf of a lender alongside smaller practices, often costing the client significantly more money, it added.
Eddie Goldsmith , senior partner at Goldsmith Williams, one of those firms asked to provide dual representation, claims this latest move by lenders is evidence of the need for greater due diligence across the mortgage sector and that brokers need to follow suit by demonstrating a duty of care when referring clients.
He said: “The entire industry is being continuously squeezed by lenders’ efforts to minimise fraud in transactions and brokers are not immune to this condition.
