subject: The forensic mortgage loan audit [print this page] The forensic mortgage loan audit The forensic mortgage loan audit
The Forensic Mortgage Loan Document Audit (FMLDA) is used as a basis for pressuring lenders to take immediate action to stop an impending foreclosure. This audit reveals various Federal and State violations of errors in the original loan documents.
The FMLDA must be performed by a qualified audit company. There is specific software that is used, and the cost can be from $395 - $595. The software used is the same software that the lender will use to determine if there are any violations in your loan. Once the audit has been completed and if violations are found, a formal request for a loan modification is sent to the lender along with an abundance of highly organized financial information that makes the best case possible as to why you deserve a loan modification. This is a long process and requires patience.
Obtaining a FMLDA is essential in every Loan Modification. The findings of an audit can significantly improve your chances for a positive resolution. The following are common reasons to conduct a FMLDA:
General Loan Documentation Errors
Reverse Engineering
Real Estate Settlement Procedures Act (RESPA) Violations
Truth in Lending Act (TILA) Violations
Home Owner Equity Protection Act (HOEPA) Violations
Good Faith Estimate Compliance
Misleading Disclosures
Overstated Home Values
Overstated Income in the Loan Application
Lender and / or Broker Misrepresentation
Usury Violations
Excessive ARM Adjustments
Packing
Excessive Points and Fees
Predatory Lending
Forgery
Loan Flipping
IMPORTANT THINGS TO KNOW ABOUT A FORENSIC MORTGAGE LOAN DOCUMENT AUDIT:
There is a fee for the Audit
If you find any violations in the audit, you will more than likely need an attorney to address these issues.
The lender will also conduct a FMLDA on your account. You will be held accountable for all the forms you have signed. This will include but is not limited to your loan application. You must review these documents for any fraud YOU may have committed on them. Many people listed more income on their application than they actually made. The lender will compare your listed income against your personal Income Tax Return for that year. If there is a difference, the lender may forward those documents to the IRS.
