Forensic Loan Document Review

We use the Forensic Mortgage Loan Document Audit as basis for gaining leverage in lender negotiations. This Audit reveals various Federal and State violations or errors in the original loan documents. Our internal auditing statistics show that more that 85% of the loans we have audited have significant violations. Reasons to Conduct a Forensic Loan Doc Audit:

• Truth-in Lending violations
• RESPA Violations
• Excessive Points & Fees
• Misrepresentation
• Constructive Fraud
• Predatory Lending

The Forensic Loan Doc Audit is a significant part of a loan modification request submitted on behalf of the homeowner. Well over 85% of the audits performed reveal major TILA (Truth in Lending Act), RESPA (Real Estate Settlement Procedures Act), Predatory Lending, and Real Estate/Mortgage Fraud violations. In some cases, if the homeowner is simply overcharged by only $35.00 on the final HUD-1, or if the annual percentage rate(APR) is only .125% higher than what was originally disclosed; there may be a violation of the Truth in Lending Act. This now gives our Loss Mitigators leverage when negotiating with the lender and more than enough incentive for the lenders to grant a beneficial loan modification.

Our Team of Mortgage Experts Will Examine Your Loan for Truth in Lending Act Violations, RESPA Violations, Fraud and Misrepresentation.

This service is very specialized and imperative in identifying if a borrower is a victim of predatory lending. We review all loan documents and perform a thorough investigation for miscalculations and to determine if the loan terms are accurate, truthful, and meet the requirements of the applicable federal statutes.

Our #1 goal is to determine whether there were violations of federal law. If these violations are found, then the borrower may be eligible for complete relief of the predatory loan. This is known as a loan rescission. Meaning the lender takes back the "predatory loan" and awards or credits back to the borrower all interest payments thus far, loan origination fees, all applicable lender fees, penalties and attorney's fees.

However, in most cases the borrower may be ineligible to rescind their loan because they are just too far underwater to obtain a new mortgage and their credit rating may have been adversely affected by the loan that has caused them pain and suffering. The most common option is to negotiate with the lender and fight for an affordable loan modification based on the violations discovered during the audit and the borrowers current financial situation. As a result the homeowner has their loan modified and may have their principal balance reduced also.

• The Audit starts with a comprehensive review of your Loan Documents:
•  Interview wih the client and all applicable parties
•  Complete, detailed loan document and disclosure audit by one of our expert auditors
• Truth in Lending Act (TILA) and Real Estate Settlement & Procedures Act (RESPA) violations including Federal and State code violations
• Reverse engineering of your loan terms and Annual Percentage Rate (APR) for possible TILA violations
• Complete report with all violations and findings

What the Audit Reveals

CONSTRUCTIVE FRAUD

Material facts include the terms of the loan, whether there is a prepayment penalty, or any other information which a reasonable borrower would want to know before accepting the loan. Did the broker or loan officer or anyone working for the broker or loan officer fail to disclose any material facts to the borrower?

FRAUD & NEGLIGENT MISREPRESENTATION

Were any representations, statements, or comments, written or oral, made by the loan officer, broker, notary, or anyone else which contradicted the terms of the documents? When a mortgage professional makes errors which a reasonably diligent mortgage professional would not have made, he or she may have made a negligent misrepresentation.

EXCESSIVE FEES

We look for Excessive Fees and Improper Charges by your Lender. We also look for Deceptive Abusive Predatory Lending Practices, Excessive Prepayment Penalties, Tangible Benefits to the Borrower, Affordability to the Borrower, Home Mortgage Disclosure Act (HMDA) Data, Broker Fee Agreements, and State and Federal Disclosure Accuracy.

BREACH OF CONTRACT

The note and its attachments are a contract. The broker must follow all the terms of the contract such as the way the interest is calculated, and the penalties it assesses. Were there any terms in the contract which the lender failed to follow?

THE RESULT

Once we determine that you may have been a victim of Deceptive Lending Practices or any other type of Mortgage Compliance issue, we will send an official written request to your lender, on your behalf. We will first attempt to settle the Loan Issue/Documented Dispute with the lender prior to filing complaint(s) with any agency and inform the lender of the issues we have found in our detailed "Mortgage Loan Document Review." Most Lenders will have little choice but to settle immediately, once they review the documented report we send them, breaking down our expert findings.

In the event the lender fails to respond to our official written request within 20 days of our notice or fails to settle within a 60 day time period, we will then give you the option to refer your case out to an attorney who can file lawsuits against the lender on your behalf.

Your Forensic Loan Document Audit Report Contains

• Any and all applicable federal law violations
• The real terms of your loan
• Outline of hidden fees and/or commission earned by your broker or lender
• A complete assessment so you can pursue possible legal claims against your broker and/or lender
• Report of all factual findings of the forensic audit