The Dutch Authority for the Financial Markets has issued a market warning that it is receiving a growing number of signals pointing to mortgage fraud, and that any financial service provider could become involved, including unintentionally. It urges firms to remain alert, scrutinise client documentation and take appropriate action to help prevent and report fraud. Financial service providers are positioned as a key gatekeeper in identifying and stopping mortgage fraud, which the AFM describes as deception such as document forgery or misrepresentation aimed at persuading a mortgage lender that information is accurate, including passing false information to credit providers. Examples cited include falsified tax returns, turnover figures, payslips, fictitious employment relationships and manipulated property valuations. The AFM also highlights potential consequences, including lenders terminating distribution or cooperation agreements with intermediaries, dissolving mortgage contracts and demanding immediate repayment, as well as possible supervisory measures that could affect a firm’s licence. Mortgage fraud will be an increased supervisory focus for the AFM this year and in the coming years, with further expectations and practical indicators published on its website and in a letter to financial service providers.
Dutch Authority for the Financial Markets 2025-06-24
Dutch Authority for the Financial Markets warns financial service providers to tighten controls amid increasing signals of mortgage fraud
The Dutch Authority for the Financial Markets has issued a warning about increasing signals of mortgage fraud, urging financial service providers to remain vigilant and scrutinize client documentation. The AFM highlights the role of providers as gatekeepers against fraud, which includes document forgery and misrepresentation. Consequences may include termination of agreements, contract dissolution, and supervisory measures affecting licenses.