Mortgage Fraud Against Borrowers on the Rise, FMA Warns

The Financial Markets Authority (FMA) has raised concerns over a significant rise in mortgage fraud cases targeting borrowers. In a recent warning to banks and non-bank deposit-takers, the FMA revealed that misconduct investigations related to mortgage fraud increased from 9 cases in 2022 to 16 in 2023 and surged further to 23 in 2024. This marks a 78% rise in 2023 and an additional 44% increase in 2024. Louise Unger, FMA’s executive director of response and enforcement, emphasized the growing risk and urged financial institutions to bolster their monitoring systems and improve frontline staff training. The FMA is particularly focused on ensuring vulnerable customers are protected from being misled or financially exploited during the mortgage process. It warned that it would continue to take enforcement action where necessary to address misconduct in the home lending space.

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