Loan Audits were designed to facilitate Lender compliance
Mortgage Compliance Audits of Loan Documents can help banking institutions, lenders, brokers, lawyers, judges and borrowers understand if underwriting guidelines and laws and regulations that banking institutions and the legislatures had implemented were correctly applied in the loan process. These mortgage compliance audits were initially done to help banks avoid the risk of issuing misrepresented or less than A quality paper. Loan Audits, properly used, reduced the chances for lender liability.
with Laws, Regulations and Underwriting Standards.
Loan Audits can Catch Laws that were Broken by the Lender
Forensic Loan Audits of Loan Documents are now being used to help banking institutions, lenders, brokers, lawyers, judges and borrowers understand if those underwriting guidelines and laws were incorrectly implemented. These Forensic Loan Audits are currently used to determine if Lenders and Brokers violated Laws in the Loan Documents.
Federal Laws that are violated frequently are the Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA), Home Ownership and Equity Protection Act (HOEPA), Fair Debt Collections Practices Act (FDCPA), etc.
State and Local Laws against Unfair Business Practices, Unfair Advertising, Trust Fund Mishandling, Breach of Fiduciary Duty, Breach of Contract, Breach of Duty of Good Faith, Fraud, Constructive Fraud, and other areas are often also violated
Loan Audits can Facilitate Loan Modifications and other Negotiations
Loan modifications can be speeded up with the results of a Loan Audit in hand. (We don't do Modifications)
When RESPA and TILA violations are found and documented, they can be used in a court of law, and a qualified written request of these violations, by Federal and State law, must be answered within 20 business days.
Thereafter, the servicer has only 60 days to cure the problem.
For borrowers in Foreclosure, violations addressed in a lawsuit should stop foreclosure in its tracks until the dispute is rectified.
For non-judicial trustee sale states like California, using an accurate forensic audit can be the answer to borrowers' and attorneys' needs to help stop foreclosure. Top attorneys are using forensic loan audits, also called mortgage compliance audits, to identify the violations and accelerate settlement negotiations, such as loan modifications, (not offered by us) which can compel principal and rate reductions, short sale payoffs, among other remedies, and lenders and servicers feel forced to pay attention and are often willing to negotiate terms more favorable to the client.
Our Audits test for:
- HOEPA Sec. 32
- All applicable state and local anti-predatory lending legislation
- An independent re-calculation of the TILA (including payment stream, disclosed finance charge, APR)
- State regulations for 1st and 2nd liens. We tests for “Restricted Fees” (fees that are not permitted within each state).
- GFE and TILA Disclosure dates
- Secondary Market Investors and GSE Compliance
Audits are well accepted in capital markets and with Wall Street firms. Loans audited can be more attractive to investors, especially those aware of assignee-liability, and have become well known to lawyers, and companies offering debt settlements, loan modifications, short sales and other negotiations (which we don't offer).
Many of our competitors price similar audits for $600 to $1,000.
Our prices are below that.
We have special prices for attorney offices.
We can give great referral fees to other offices, but the client must buy the audit direct from us.