subject: WHAT IS A FORENSIC LOAN AUDIT? [print this page] WHAT IS A FORENSIC LOAN AUDIT? WHAT IS A FORENSIC LOAN AUDIT?
A Forensic Loan Audit is designed to uncover federal and state violations committed by your lender and/or broker when they originally created your loan. The documentation of these violations through a Forensic Loan Audit is the LEVERAGE that homeowners and their attorneys often use in negotiations with the lender to achieve a successful loan modification.
Predatory lending is a buzz word that we hear quite often now and for good reason. Thousands, possibly millions, of loans were made where the Truth in Lending Act and other lending laws were violated. Over 85% of the loans made in the last decade have errors that a Forensic Loan Audit will uncover. Many lenders placed thousands and thousands of borrowers in loans that they could not afford, and in doing so took shortcuts that were not legal. However, no matter why these violations occurred they carry stiff financial penalties for the lender and can also entail serious legal consequences for them as well. The intent of an audit is not to force the parties into a lengthy and costly lawsuit, but rather to force the lender to negotiate a reasonable solution with the homeowner.
The complete Forensic Loan Audit will check for compliance or non-compliance in regards to the following lending laws and regulations:
Truth in Lending Act (TILA)
Home Owners Equity Protection Act (HOEPA)
Equal Credit Opportunity Act (ECOA)
Fair and Accurate Credit Transaction Act (FACTA)
Gramm, Leech, Bliley Act
Underwriting Standards
Other Miscellaneous Predatory Lending issues
The forensic loan audit will also take into account the following:
The appraisal performed on the property
Whether the underwriter did their due diligence in underwriting the loan
The financial capability of the client
The financial risk of making this loan
Review of the borrower's credit at the time of the loan
The Forensic Loan Audit is the FIRST STEP a homeowner facing foreclosure should take to properly prepare for any type of litigation or any type of solution (forbearance, loan modification, partial claim, deed-in-lieu, loan assumption, bankruptcy, sale of property, or short sale) when dealing with the lender. Audits are used as a valuable tool to get your file to the top of the lender's pile and to get your case noticed and heard. Only a small percentage (7-15%) of people trying to negotiate a loan modification succeeds. Short sales are becoming harder to do and are taking longer. With millions of homeowners requesting financial solutions from their lenders, it is becoming harder and harder to get a solution. A Forensic Loan Audit can give the homeowner the LEVERAGE needed to be successful.
Today, you need every tool, every amount of leverage possible, along with an experienced attorney to take your case and negotiate a real solution that keeps you in your home.
For more information, please go to: www.NewHopeAudits.com
Disclaimer: The information provided herein is offered as an educational service only and is not intended as legal advice.
