Forensic Loan Document Review is a complete investigation of your original loan documents to identify any fraud and locate all the violations of your federally protected consumer rights.

Very often, homeowners attempting to get short sales or loan modifications completed without a Mortgage Audit are unknowingly placing themselves at great risk:

• They are likely to be disqualified or denied.
• They may receive new terms that do not actually resolve their financial crisis.
• They'll wait for months and months for an answer from their lender, sometimes their homes are sold at auction while they wait.

The above scenarios are avoided when negotiations only begin after an investigation of the loan documents has been conducted. Attitudes change when the lender now realizes the problem(s) they have.

The power of the Forensic Loan Document Review has changed the playing field, Once completed, we can help you modify the terms of your loan.

Forensic Audit Process

What is included in a 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 20 – 30 page report with all violations and findings

We specialize in providing you with a full forensic audit report with # of counts after reviewing:

1. Loan application
2. Right to Cancel
3. Deed of Trust
4. Note
5. Adjustable rate note
6. Addendum to the note for the interest only payment period
7. Truth in Lending statements; h. Good Faith Estimate (GFE)
8. HUD 1
9. Appraisal
10. All documents received from last transaction

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 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 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.

Forensic Audit Findings

FORENSIC LOAN DOCUMENT AUDIT
identifies in the origination of your mortgage the following:

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
• List Report of all counts against lender / broker and 3rd parties involved

Laws Governing A Forensic Audit

Truth-In-Lending Act (TILA) Violations — Inaccurate reporting of APR and finance charge calculations on borrower disclosures. Calculation errors may occur as a result of failing to include one or more prepaid finance charges in the calculations, incorrect disclosed funding dates, or last-minute changes made to the loan by the settlement agent at the closing table. If understated, the lender is in violation of the federal Truth-In-Lending Act as well as many state laws prohibiting such actions. Lender required to reimburse borrower for the difference, and may be subject to statutory damages, administrative sanctions, loan buy-backs, and lawsuits. In addition, the rescission period may reopen, creating additional risk for the lender.

Anti-Predatory Lending Violations — Consumer protection laws, regulations and guidelines exist at the federal, state and local levels, and function by placing strict but varying limits on the rates and fees that can be charged to a borrower. Violations typically occur because of the vast misunderstanding of how they work. Examples of violations include failing to include fees such as yield spread premiums in the calculations or using an incorrect loan amount value to perform the calculation. Penalties for violations are as varied as the laws that govern. Typical costs include borrower reimbursements, statutory and punitive damages, attorneys’ fees, administrative fines and penalties, loan buy-backs and reformation, and class-action lawsuits.

State Law Violations (Non-Predatory) — Failing to maintain adequate safeguards in loan origination systems and well as document software systems results in loans containing illegal terms or provisions. Examples include illegal prepayment penalty clauses, rates that are usurious, or fees that are not allowed to be charged. Typical penalties include actual damages and costs, attorney’s fees, administrative fines and penalties, loan buy-backs, and class-action lawsuits.

Reverse Mortgage Violations — With an expected 55 million Americans turning 62 in the coming years, the “next big thing” will almost certainly be reverse mortgages. Common violations include failing to adequately disclose the APR, which is different than that of forward mortgages, and providing incomplete or improper disclosures. Because this is such a new segment in the industry, penalties are less clear than with forward mortgages. As these types of mortgages affect senior citizens, class-action lawsuits are a real and serious threat.

Real Estate Settlement Procedures Act (RESPA) Violations RESPA prohibitions place limits on a lender’s or broker’s ability to charge or pay fees that are hidden from the borrower. Common violations include accepting kickbacks or referral fees, upcharging for services provided by third parties, and charging for services not actually performed. Penalties include actual damages, administrative fines and class-action lawsuits. Others: Lending without providing borrowers a reasonable, tangible net benefit, state-specific disclosure errors, servicing violations, Fair Lending violations