Forensic Loan Audits

What is a Forensic Loan Audit?

A forensic loan audit is a review and evaluation of your post-closing loan documents to determine if there were any lending violations performed by your lender.   A forensic loan audit can be an integral tool that helps the specialists at Performance Solutions better negotiate your loan modification. 

The federal government mandates that lenders must follow strict lending laws when providing home loans to borrowers.  Any slight violation by the lender or a representative of the lender is an actionable violation and can have far reaching consequences.  Performance Solutions, if deemed necessary, will conduct a forensic loan audit to evaluate your loan documents.  Our professional auditors look to determine if your lender(s) was in compliance with the following laws and regulations:

• State and Federal Predatory Lending Laws
• Real Estate Settlement & Procedures Act (RESPA)
• Truth in Lending Act (TILA)
• Home Ownership and Equity Protection Act (HOEPA)
• Fair Credit Reporting Act (FCRA)
• Fair Housing Act (FHA)
• Equal Credit Opportunity Act (ECOA) and many more

Are You a Victim of Predatory Lending?

Predatory lending is a buzz word that is floating around a lot right now, and for good reason. There are thousands, maybe even millions, of people that have mortgages whereby the Truth in Lending Act was violated, which would fall under the predatory lending statute.  It is estimated as many as 83%-87% of all home loans have serious federal and/or state infractions conducted by lenders such as:

• TIL (Truth In Lending) Statement does not reflect accuracy with the APR, amount financed or total payments
• TIL information was not received by the borrower(s) in the required time frame
• TIL Notice of Right to Cancel is not filled out properly by lender
• No copy of promissory note was made available to borrower(s)

• RESPA booklet was not given to borrowers
• Risk factors for obtaining credit were not appropriately disclosed to borrower(s)
• A good faith estimate was not presented to borrower(s) within three days of taking the loan application
• No payment schedule was made available to borrower(s) in the loan documentation package
• Notice of Right to Cancel was not given to each borrower (one for each borrower is required)
• There is no final Hud-1  in the file or the final HUD-1 is inaccurate
• Required Brokers disclosures were not presented to borrower(s)
• FICO scores were not presented
• Certain documents may not have been signed or notarized correctly, if at all
• There is no ARM disclosure or it may be presented inaccurately

In order to uncover these violations, a forensic loan audit is performed by a qualified auditor and/or underwriter and further reviewed by an attorney.  If violations are found, this often allows the borrower to get a new loan with a principal reduction, an interest rate reduction, or a longer term, all of which can significantly lower the monthly obligations.

Contact a Loan Modification Specialist at Performance Solutions!

Performance Solutions works with only the most professionally trained and thorough forensic loan auditors in the industry to obtain the most accurate reports for their clients.  Their highly skilled auditors will work hard for you in unveiling violations and providing you with the best loan modification terms possible.

If you are interested in learning more about forensic loan audits, please Contact Performance Solutions today at 866-216-2671.