Mortgage Loan Forensic Analysis
This is a boiling subject getting underlying attention in the mortgage modification business. I am comfortable with three really excellent mortgage modification firms.
Two of them advocate getting the mortgage modification file in the hands of the lender first; and then considering a forensic mortgage loan audit. There are reported statistics of a really significant number of mortgage loans being subject to forensic audit. I don’t know. My personal opinion is reserved. But if you’ve heard of it, or suspect you might benefit; I highly recommend you consider and request more information. If you have money coming to you; go get it.
"How to exercise your rights with a forensic audit"
¤ For Truth in Lending Act Violations, RESPA Violations, HOEPA Section 32 and Fraud
When people look for a mortgage they rely on professional advice and the aid of a mortgage broker or lender. The loan process is complicated and most everyone places their trust in the professional that is guiding them through the process.
Unfortunately, many of these professionals placed thousands and thousands of borrowers in loans that they could not afford or in just down right exotic mortgages, that now have become extinct.
Predatory lending is a buzzword that is floating around a lot right now and for good reason. There are thousands and quite possibly maybe a million plus people that have mortgages where the Truth in Lending Act was violated, thus falling under the predatory lending statue. Many can stop foreclosure if they only knew what to look for and how to defend themselves.
¤ Loan Document Audit
This service is a 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 met the requirements of the applicable federal statutes.
Our #1 goal is to determine whether there were violations of federal law. If violations are found, 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 made on payments thus far, loan origination fees, all applicable lenders fees, penalties and attorney's fees.
This can be done by means of a Loan Modification or a new affordable loan. This allows the borrower to get a new loan with a smaller principle, meaning that the mortgage can be affordable and non-predatory
¤ Steps to Forensic Loan Document Audit:
* Complete client interview and all applicable parties * Complete loan document and disclosure audit by 30 year underwriting and fraud and compliance mortgage professional * Truth in Lending Act (TILA) and Real Estate Settlement & Procedures Act (RESPA) * Reverse engineering of your loan terms and Annual Percentage Rate (APR) for possible TILA violations * Complete 10 page report with all violations and findings
¤ 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 AND 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?
¤ NEGLIGENT MISREPRESENTATION
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.
¤ 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?
¤ LOAN AUDIT REPORT
* Results report of all factual findings of the forensic audit * 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
