The collaboration, which was agreed at the end of last year, will see practice notes being sent out to all solicitors later this month (14 March) detailing warning signs and steps solicitors can take to protect themselves from becoming involved in mortgage fraud.
The initiative comes after the Solicitors Regulation Authority revealed it was investigating up to 60 solicitors on suspicion of mortgage fraud.
Official figures suggest that complaints against solicitors resulting from instances of mortgage fraud have risen significantly in recent years, from 85 in 2004 to a new high of 293 last year.
Commenting on the initiative, Law Society vice president Paul Marsh said: “The Law Society is encouraged by the new collaborative approach across industry and government to tackle this problem.
“We look forward to being part of this partnership, coordinated by the NFSA, and to continue our role in educating the legal profession on this important issue.”
Earlier this week Legal Week revealed that Britannia Building Society is to launch a special unit seeking compensation from law firms and surveyors in relation to negligent advice on property deals where its lending arm, Platform, has suffered substantial losses following the repossession and sale of a property or portfolio of properties.
Other lenders are now expected to follow suit in light of the number of potentially fraudulent transactions being uncovered in the market downturn.
A report by the Association of Chief Police Officers found that mortgage fraud accounted for losses of £700m last year.
