Performing a forensic loan audit involves an extensive and very thorough examination of the entire mortgage file to determine enforceability of the mortgage, note and related documents.
Predatory Lending is a term used to describe unfair, deceptive or fraudulent practices of some lenders during the loan origination process. Predatory Lending refers to dishonest or deceptive practices by lenders who take advantage of borrowers and home buyers. Some of the most common practices of predatory lending include:
Kickbacks to Brokers
Loan Flipping
Steering & Targeting
Unreasonable Prepayment Penalties
Excessive Fees
If you are facing foreclosure and your lender refuses to work with you then a mortgage modification negotiator might be able to help. Even if your lender has told you that you do not qualify for loan modification, if a forensic loan audit uncovers evidence of unfair lending practices, errors or violations, then your lender will be compelled to make corrections or face a lawsuit.
A forensic loan audit will investigate and reveal:
The real terms of your mortgage
Fees and commissions earned by your broker
Excessive fees
Undisclosed fees
Technical errors in your loan documents
Inflated appraised value
Verification of borrower’s ability to repay the loan
A forensic loan audit will look for proper disclosure:
The loan officer must accurately disclose loan terms to the borrower
Borrowers must be notified in writing of their right to cancel the loan
Borrowers must be provided with all federal and state disclosures
A forensic loan audit is a complete assessment of your mortgage file to be used to pursue legal claims against your lender if they refuse to correct or modify your mortgage to affordable terms.
My Mortgage Auditor Forensic Audit Specialists help victims of predatory lending and distressed homeowners with loan modification for a more affordable and sustainable mortgage. My Mortgage Auditor services homeowners in Southeast Michigan, Oakland County, Southfield, Pontiac, Royal Oak, West Bloomfield, Farmington Hills, Wayne County, Detroit, Dearborn, Canton, Livonia, Westland, Macomb County, Sterling Heights, Warren, St. Clair Shores, and neighboring cities and communities.
Monday, November 2, 2009
Forensic Loan Audit: A Weapon for Distressed Homeowners to Fight Back
Forensic loan audit is a new weapon for distressed homeowners to use in their fight to save their home from foreclosure. Homeowners who have adjustable rate mortgages, are victims of predatory lending, or individuals who are having trouble making their mortgage payments now have a new weapon to add to their arsenal for negotiating power with their lender.
What is there to negotiate?
Mortgage modification is often a desirable option for homeowners facing foreclosure. Some lenders will agree to modify the terms of the mortgage to make it affordable for homeowners to keep their homes. The reason they will do this is to mitigate their losses. For example, they might reduce the interest rate or increase the mortgage term to reduce the monthly payment rather than proceed with a lengthy foreclosure process and be stuck with a house that they cannot sell in today’s distressed real estate market.
Sounds like a No-Brainer – Why would it be Difficult?
The process of negotiating a loan modification is often a difficult process for the average homeowner, especially one who is emotionally distressed because they are in danger of losing their home. Just getting the right person on the phone to speak with can be quite a task.
The average homeowner has little chance of negotiating an affordable mortgage modification with lenders who have more resources at their disposal.
Negotiating Power for Distressed Homeowners
Now there is a new weapon for distressed homeowners to add to their arsenal; the Forensic Mortgage Audit, also referred to as a forensic loan audit, forensic loan examination or forensic mortgage review. The forensic loan audit can be performed by mortgage industry experts to determine unfair or unethical lending practices, violations of the Truth in Lending Act, or unintentional errors in preparing loan documents.
According to the Truth in Lending Act, even a small error in calculations or failure to properly disclose the terms of the loan can result in the borrower being awarded a refund of closing costs, finance charges or interest payments. They may even be entitled to rescind the mortgage.
Until recently, forensic mortgage audits were only available to banks and large lending institutions to determine their own liability exposure when purchasing mortgage loans. Forensic loan examinations are now available to distressed homeowners to use as negotiating power with their lender.
Attorneys and mortgage modification services are using forensic loan audits to assist borrowers in negotiating loan modification. Their findings provide leverage for the homeowner to use in coming to an affordable work out agreement with their mortgage servicer.
Studies have shown that nearly 80 percent of mortgage files that are reviewed are found to contain violations ranging from unintentional mathematical errors to blatant fraud. The intent of the forensic mortgage review is to encourage the lender to negotiate an affordable mortgage modification so the borrower keeps their home while the lender mitigates their losses. Most lenders would rather reduce the interest rate or extend the mortgage term than be faced with a lengthy and costly lawsuit.
My Mortgage Auditor provides relief to distressed homeowners in Oakland County, Southfield, Pontiac, Royal Oak, West Bloomfield, Farmington Hills, Wayne County, Detroit, Dearborn, Canton, Livonia, Westland, Macomb County, Sterling Heights, Warren, St. Clair Shores, and neighboring cities and communities.
What is there to negotiate?
Mortgage modification is often a desirable option for homeowners facing foreclosure. Some lenders will agree to modify the terms of the mortgage to make it affordable for homeowners to keep their homes. The reason they will do this is to mitigate their losses. For example, they might reduce the interest rate or increase the mortgage term to reduce the monthly payment rather than proceed with a lengthy foreclosure process and be stuck with a house that they cannot sell in today’s distressed real estate market.
Sounds like a No-Brainer – Why would it be Difficult?
The process of negotiating a loan modification is often a difficult process for the average homeowner, especially one who is emotionally distressed because they are in danger of losing their home. Just getting the right person on the phone to speak with can be quite a task.
The average homeowner has little chance of negotiating an affordable mortgage modification with lenders who have more resources at their disposal.
Negotiating Power for Distressed Homeowners
Now there is a new weapon for distressed homeowners to add to their arsenal; the Forensic Mortgage Audit, also referred to as a forensic loan audit, forensic loan examination or forensic mortgage review. The forensic loan audit can be performed by mortgage industry experts to determine unfair or unethical lending practices, violations of the Truth in Lending Act, or unintentional errors in preparing loan documents.
According to the Truth in Lending Act, even a small error in calculations or failure to properly disclose the terms of the loan can result in the borrower being awarded a refund of closing costs, finance charges or interest payments. They may even be entitled to rescind the mortgage.
Until recently, forensic mortgage audits were only available to banks and large lending institutions to determine their own liability exposure when purchasing mortgage loans. Forensic loan examinations are now available to distressed homeowners to use as negotiating power with their lender.
Attorneys and mortgage modification services are using forensic loan audits to assist borrowers in negotiating loan modification. Their findings provide leverage for the homeowner to use in coming to an affordable work out agreement with their mortgage servicer.
Studies have shown that nearly 80 percent of mortgage files that are reviewed are found to contain violations ranging from unintentional mathematical errors to blatant fraud. The intent of the forensic mortgage review is to encourage the lender to negotiate an affordable mortgage modification so the borrower keeps their home while the lender mitigates their losses. Most lenders would rather reduce the interest rate or extend the mortgage term than be faced with a lengthy and costly lawsuit.
My Mortgage Auditor provides relief to distressed homeowners in Oakland County, Southfield, Pontiac, Royal Oak, West Bloomfield, Farmington Hills, Wayne County, Detroit, Dearborn, Canton, Livonia, Westland, Macomb County, Sterling Heights, Warren, St. Clair Shores, and neighboring cities and communities.
The Purpose of the Forensic Loan Audit
Forensic Loan auditing is necessary to determine mortgage loan enforceability in the event of predatory lending or fraudulent mortgage practices. There are several reasons a law firm or mortgage modification company would perform a forensic audit.
Performing a forensic audit demonstrate to clients that the company employs a team of professionals who are diligent and thorough in pursuing all available remedies and solutions. The findings in a forensic audit are a critical part of understanding the borrower’s situation and negotiating an appropriate workout. Violations of mortgage guidelines or proof of mortgage fraud or unfair practices will compel a lender to modify a loan even if the borrower does not qualify for loan modification.
Performing a forensic audit indicates a company is providing expert services to distressed homeowners rather than one who is operating a foreclosure rescue scam. Federal and State agencies are cracking down on loan modification companies who prey on people who are facing foreclosure by charging high fees for minimal service. When a company performs a complete forensic audit, by reviewing a mortgage file for compliance with consumer protection laws, they are providing something of value to their client.
A company gains the attention and respect of loss mitigation departments when they do their due diligence and perform a complete forensic loan audit. It shows lenders and mortgage servicers that the borrower is being represented by a competent professional who intends to negotiate a solution for all parties involved. When a distressed homeowner is able to keep their home with more affordable loan terms and a lender mitigates their losses, everyone wins.
The most important reason to perform a forensic audit is to gain leverage for negotiating with the lender or servicer. Any violations of mortgage guidelines or consumer protection laws relating to the mortgage will motivate a lender to modify the mortgage. Depending on the violation, a borrower may be entitled to compensation including the right to rescind the loan, stop the foreclosure process, reduce the principal balance, lower the interest rate or modify the mortgage terms for a more affordable and sustainable loan.
A forensic loan audit is a powerful negotiating tool for mortgage modifications. Material violations in the mortgage industry are not uncommon; in fact, over 80% of federally supervised banks have that were making loans at the peak of the mortgage boom were cited for compliance violations.
My Mortgage Auditor is the industry leader in forensic auditing and mortgage modifications to help people keep their homes. Their greatest asset is their reputation; their goal to help homeowners, attorneys and loan consultants negotiate a winning solution for all parties involved. My Mortgage Auditor works with distress homeowners in South East Michigan, Oakland County, Southfield, Pontiac, Royal Oak, West Bloomfield, Farmington Hills, Wayne County, Detroit, Dearborn, Canton, Livonia, Westland, Macomb County, Sterling Heights, Warren, St. Clair Shores, and neighboring cities and communities.
Performing a forensic audit demonstrate to clients that the company employs a team of professionals who are diligent and thorough in pursuing all available remedies and solutions. The findings in a forensic audit are a critical part of understanding the borrower’s situation and negotiating an appropriate workout. Violations of mortgage guidelines or proof of mortgage fraud or unfair practices will compel a lender to modify a loan even if the borrower does not qualify for loan modification.
Performing a forensic audit indicates a company is providing expert services to distressed homeowners rather than one who is operating a foreclosure rescue scam. Federal and State agencies are cracking down on loan modification companies who prey on people who are facing foreclosure by charging high fees for minimal service. When a company performs a complete forensic audit, by reviewing a mortgage file for compliance with consumer protection laws, they are providing something of value to their client.
A company gains the attention and respect of loss mitigation departments when they do their due diligence and perform a complete forensic loan audit. It shows lenders and mortgage servicers that the borrower is being represented by a competent professional who intends to negotiate a solution for all parties involved. When a distressed homeowner is able to keep their home with more affordable loan terms and a lender mitigates their losses, everyone wins.
The most important reason to perform a forensic audit is to gain leverage for negotiating with the lender or servicer. Any violations of mortgage guidelines or consumer protection laws relating to the mortgage will motivate a lender to modify the mortgage. Depending on the violation, a borrower may be entitled to compensation including the right to rescind the loan, stop the foreclosure process, reduce the principal balance, lower the interest rate or modify the mortgage terms for a more affordable and sustainable loan.
A forensic loan audit is a powerful negotiating tool for mortgage modifications. Material violations in the mortgage industry are not uncommon; in fact, over 80% of federally supervised banks have that were making loans at the peak of the mortgage boom were cited for compliance violations.
My Mortgage Auditor is the industry leader in forensic auditing and mortgage modifications to help people keep their homes. Their greatest asset is their reputation; their goal to help homeowners, attorneys and loan consultants negotiate a winning solution for all parties involved. My Mortgage Auditor works with distress homeowners in South East Michigan, Oakland County, Southfield, Pontiac, Royal Oak, West Bloomfield, Farmington Hills, Wayne County, Detroit, Dearborn, Canton, Livonia, Westland, Macomb County, Sterling Heights, Warren, St. Clair Shores, and neighboring cities and communities.
Forensic Loan Audit: A Powerful Tool for Negotiating Mortgage Modification
Forensic loan audits are powerful negotiation tools to use with mortgage modification negotiations. Subprime lending practices and economic conditions have led to the mortgage melt-down causing a flood of foreclosures. Mortgage fraud and predatory lending practices have increased, creating a demand for forensic loan auditors and mortgage modification specialists.
In order to qualify as a forensic loan auditor who performs a forensic file review one must have a strong understanding of mortgage loan documents and mortgage laws and guidelines at the time of origination.
A qualified forensic auditing service consists of a team of mortgage industry experts who specialize in consumer finance law and are skilled in consumer protection regulation.
Performing a forensic loan audit involves an extensive and very thorough examination of the entire mortgage file to determine enforceability of the mortgage, note and related documents.
When the investigation is complete the forensic auditing team compiles the data and prepares a report outlining all regulatory violations they discover and findings of predatory lending, mortgage fraud or other unfair or deceptive practices.
Forensic loan auditors represent borrowers as they negotiate loan related disputes and agree to remedies or compensation for the fraud victim or distressed borrower. Compensation might include the right to rescind the loan, stop the foreclosure process, recoup over charges with back interest, reduction of the loan balance, modified loan terms, interest refunds or other monetary damages.
My Mortgage Auditor has helped distressed home owners in South East Michigan keep their homes by modifying their mortgage to an affordable and sustainable loan. Through diligent representation of homeowners, they negotiate a modification or resolution with lenders. They assist distressed borrowers in Oakland County, Southfield, Pontiac, Royal Oak, West Bloomfield, Farmington Hills, Wayne County, Detroit, Dearborn, Canton, Livonia, Westland, Macomb County, Sterling Heights, Warren, St. Clair Shores, and neighboring cities and communities.
In order to qualify as a forensic loan auditor who performs a forensic file review one must have a strong understanding of mortgage loan documents and mortgage laws and guidelines at the time of origination.
A qualified forensic auditing service consists of a team of mortgage industry experts who specialize in consumer finance law and are skilled in consumer protection regulation.
Performing a forensic loan audit involves an extensive and very thorough examination of the entire mortgage file to determine enforceability of the mortgage, note and related documents.
When the investigation is complete the forensic auditing team compiles the data and prepares a report outlining all regulatory violations they discover and findings of predatory lending, mortgage fraud or other unfair or deceptive practices.
Forensic loan auditors represent borrowers as they negotiate loan related disputes and agree to remedies or compensation for the fraud victim or distressed borrower. Compensation might include the right to rescind the loan, stop the foreclosure process, recoup over charges with back interest, reduction of the loan balance, modified loan terms, interest refunds or other monetary damages.
My Mortgage Auditor has helped distressed home owners in South East Michigan keep their homes by modifying their mortgage to an affordable and sustainable loan. Through diligent representation of homeowners, they negotiate a modification or resolution with lenders. They assist distressed borrowers in Oakland County, Southfield, Pontiac, Royal Oak, West Bloomfield, Farmington Hills, Wayne County, Detroit, Dearborn, Canton, Livonia, Westland, Macomb County, Sterling Heights, Warren, St. Clair Shores, and neighboring cities and communities.
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