Forensic Loan Document Review
Question 1: What is a Forensic Loan Document Review?
A forensic loan document review is a detailed review of your loan documents, especially your Deed of Trust. Trained professionals can see if a mistake was made, regardless of the lender's intent. Once the review is complete and the errors are established, be careful -- this isn't the answer to everything. The lender you're dealing with isn't going to all of the sudden do any more for you than they were originally willing to do. The key to this review is to track the lender's pattern of fraud (if it exists) over hundreds of separate reviews. If the lender ever gets taken to court, the judge can make a ruling based on the facts of the reviews.

Question 2: Why is a forensic mortgage audit important?
Loans must be legal to remain enforceable by the lender. Loan Violations are serious offenses of Federal Consumer Protection Law and lenders may face stiff fines and legal consequences for breaking these laws.

Most of the time, mortgage bankers, banks, and servicers are run by business people. They understand the financial ramifications of their mistakes, and usually don't need to worry about expensive litigation or the risk of being charged with large fines, because most people can't afford to take them to court.

If a loan was funded unlawfully, the borrower may be entitled to compensation, a refund of all interest and principal payments made for the last three years, all non-recurring closing costs, legal fees, or a renegotiation or modification of the terms of the loan. From 2000-2007, tens of thousands of loans were funded unlawfully. Your loan may be unlawful, and you may be entitled to substantial damages whether or not you're currently in foreclosure.

A forensic mortgage audit determines violations of the laws governing lenders. An audit report provides hope for negotiating with your lender. Whether you need your loan modified or you need to sell your home as a "short sale" or even if you need to have your loan rescinded, your lender will be motivated to work with you when you have evidence of their violations.

Question 3: How does a forensic mortgage audit help a home owner?
Violations are the leverage used to present your case with your lender. The more violations discovered, the better your chances of obtaining a favorable settlement. The chances of a successful settlement increase with the most severe violations.

Question 4: What documentation do I need to provide?
Here is a list of documents we collect and review for the loan audit:
  1. Initial Borrower Application
  2. Borrower Authorization
  3. Credit (credit used to qualify the loan)
  4. Initial Disclosures
  5. Initial GFE
  6. Initial TIL
  7. Estimated Settlement Statement (HUD 1)
  8. Lender Loan Approval
  9. Appraisal (Appraisal used to qualify the loan originally)
  10. Final Borrower Application
  11. Final Disclosures
  12. Final GFE
  13. Final TIL
  14. Final Settlement Statement (HUD 1)
  15. NOTE
  16. Deed of Trust / Mortgage Document
  17. All Riders
  18. Escrow Instructions
  19. Title policy
  20. Right of Rescission (if refinance)
  21. Purchase Agreement (if purchase)

Question 5: What happens during the Audit?
The Audit process starts with a thorough understanding of your unique situation. An in-depth interview is conducted to better understand what violations may have occurred on your loan, including any federal violations during collections. We will need a copy of your deed of trust so we can better help you with your next steps. Most importantly, we will also need a copy of your closed loan documents. The documents issued to you at closing may be okay, but it is advised that a copy of the original signed documents be retrieved from the title company that closed your loan, or the closed loan documents the servicer has on file. By sending a certified "Qualified Written Request" letter to the mortgage servicer, they will have to respond in a timely fashion, or they could fall into Federal and State Default. If you are requesting documents through the title company, they may be able to email you an encrypted file or a secure copy of your closed loan documents. Simply make a phone call, and follow up by contacting them in writing to authorize a copy of your mortgage's closed-loan documents to be emailed or mailed to you. Upon receiving the items, please contact us.

After reviewing your documents, we may have you consult with our attorney to go over your options, depending on the violations we found. If you have an attorney, please let us know, and we will be able to assist their law office with the findings, and consult your attorney to update them. You and your attorney will additionally receive support from the auditors. The auditors will be accessible for a free conference call to discuss the specific findings of your audit, should you or your attorney have additional questions.

If you or someone you know has been victimized by an unlawful RESPA overcharge, or if you have any questions about any aspect of RESPA, don't wait. The deadlines for bringing a RESPA lawsuit can be short; if you delay, you could lose your right to bring a claim.

Question 6: What happens if there are violations in my loan?
Once the loan audit determines that you may have been a victim of deceptive lending practices or any other type of mortgage compliance issue stated above, you can decide to fight your lender. Contact us to find out how!

The course of action you should take is often dependent upon your current situation. If you are not seriously delinquent on your loan, but have difficulty making your mortgage payments, you may want to consider the use of our loan modification partner to assist you in reaching an agreement with your lender to modify your loan terms.

If you have received a Notice of Default or are in Foreclosure, contact us to determine your next steps. You should consider speaking with our attorney, who is skilled in consumer advocacy, predatory lending, and real estate law. The attorney will reach a settlement agreement with the lender (most cases) or continue on to trial (rare situations) and demonstrate to a judge or jury how the lender has willfully failed to comply with Federal Law.

Make sure that your financial obligations are always met. Always pay your mortgage payment if you can. If a financial hardship prevents you from paying on time, then contact us to help you work with your lender. It is unlawful for the lender to report negative information about you to the Credit Reporting Agencies while the lawsuit is pending under the Fair Credit Reporting Act.