Who knows what the circumstances were? The lender should, indeed, exercise diligence.....but that only goes so far. It's going to get very complicated, particularly as the alleged fraud occured 14 years ago (2004 I believe). A court of ombudsman will ask why the fraud wasn't noticed when the mortgage repayment had increaed during that 14 year period.Naughty little banker, you’ve conveniently forgotten the lender is put on notice requiring them to confirm, within reason, that the information on the application is correct.
Because why wouldn’t you bother phoning both people to confirm details?
It sounds like a very sad state of affairs.