Forensic Loan Audits Make All Of The Difference
Forensic
Loan Audits make all the difference when requesting a loan modification. A Forensic Loan Audit reveals unlawful mistakes and violations committed by your Loan Officer, Lender, Bank, Title Company or Mortgage Broker. From the day you first applied, till the day your loan funded, strict guidelines and laws were mandated on all who worked on your home loan. Current estimates state 83% of all home loans contain RESPA violation. These violations are the "Hammer" used to negotiate more affordable monthly payments, reduce principle balance and change the terms of your loan. This leverage provides the homeowner and/or legal counsel strong grounds for litigation case and usually ends with non judicial settlement by your lender. This settlement comes in the form of a loan modification. Generally, the more violations, and the higher their severity, the better chance you have of obtaining a loan modification with long term positive results.
The years 2000 through most of 2007 were a lending free for all. Interest rates were sharply declining from the high 7 percents. New loan products allowing borrowers not to disclose any income documentation. If you had a heart beat you could get a loan. Loan Officers, Banks, Lenders, Mortgage Brokers and Title Companies were inundated with loan applications. The prospect of earning huge commissions could easily be replaced with greed. Many in the industry made fortunes during this time. That ship sank and sank fast. Today the past wreckage has all but brought the lending industry to a grinding halt... The truth is all were working long hours. Most were taking shortcuts, knowingly or unknowingly disregarding laws, and a few, were flat out committing fraud.
No matter the cause of these violations, they carry categorically stiff financial penalties, and can result in legal consequences to the banks and lenders, such as refunding all interest paid, closing costs, partial loan balance reduction, reducing the current interest rate and in a few cases, zeroing the balance out completely, leaving the homeowner with a free and clear property. Listed below is an overview of our Forensic Loan Audit.
Our Forensic Loan Audit
provides the following checks and balances
- Predatory loan violations and
predatory loan practices.
- Violations of RESPA (Real Estate
Settlement Procedures Act) loan.
- Violations of HOEPA (Home Ownership
and Equity Protection Act) loan.
- Violations of other federal, state
and county laws and regulations.
- 125 quality control checks, using proprietary software
Help4homeOwers Loan Auditors Baseline Compliance Reviews include comparisons, tests, functions and calculations under the Truth In Lending Act (click here for a description of National Loan Auditors Section 32 HOEPA review): Federal Truth in Lending Act Tolerance Tests (TILA/Tolerance).
Our Loan Auditors recalculates the following amounts and schedules based on the loan data submitted to the system to determine if the loan is within the permissible finance charge tolerances ($35 and $100) and APR Tolerance (1/8 of 1%). Complete forensic loan analysis requires the following:
- Amount of finance charge.
- Annual percentage rate (APR).
- Payment schedule.
- Amount financed.
- Total amount of payments.
- Amortization schedule.
- Federal Truth in Lending Act Right of Rescission Tests (TILA/ROR).
Our Forensic Loan Audit validates that the rescission period for the loan is in compliance with Truth In Lending timing requirements by comparing the loan disbursement date to the most current dates provided in the loan data submitted to the forensic loan software:
- Forensic loan analysis requires the
date the document was signed.
- For the purpose of a thorough
forensic loan audit we require the last disclosure date.
- Right of rescission expiration
date.
- HOEPA disclosure date (if
applicable).
- HOEPA, State and local high costs.
Federal (HOEPA), state and municipal high cost thresholds
Our Loan Auditor's forensic loan analysis compares the loan data to the calculated high cost thresholds as defined in the Home Ownership and Equity Protection Act (HOEPA) and all applicable state and local jurisdictions.
Our Loan Audits return Pass/Fail messages showing the calculated loan APR and points and fees versus the legal limits (including the difference). FLA also returns payment streams, finance charge worksheets, and high cost points and fees worksheets to further assist homeowners.
State
Consumer Credit Law
Our FLA complies with over 300 U.S. State Laws regarding consumer residential mortgage loans secured by real property as these laws relate to such issues as:
- Usury rate ceilings percentage
caps.
- Prohibited fees identified during a
comprehensive loan document review.
- Fee percentage of dollar amount
limits.
- Prepayment penalty prohibitions and
limitations.
- Late fee dollar amount limits and
length of late fee grace periods.
- Interest accrual start dates.
- Negative amortization prohibitions.
- Balloon payment prohibitions or
term limitations.
- Payment and term limitations.
Our Forensic Loan Audit applies preemptions, as appropriate, under the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) and the Alternate Mortgage Transactions Parity Act (AMTPA). Additionally, for loans identified as high-cost loans by the HOEPA & High Costs review, Our FLA will further compare the applicable loan data to requirements of jurisdiction specific laws prohibiting predatory lending. Our forensic loan audit considers and weighs historical rules, indices and information in accordance with state laws that are preserved to enable retrospective quality control loan auditing.
HOEPA - Home Ownership Equity Protection Act state and local high costs
Federal (HOEPA), state and local high cost thresholds.
Our FLA compares the loan data collected during a forensic loan audit to the calculated high cost thresholds as defined by the Home Ownership and Equity Protection Act (HOEPA) and applicable state and local jurisdictions.
WE make the determination about whether a fee is a finance charge or is included in a points and fee analysis. In other words, our FLA calculate values (e.g. total loan amount) or finance charge "flags." Using raw loan data, Our Forensic Loan Audit recalculate all values and classifies all fees to determine whether an APR or points and fees threshold has been triggered.
Our Forensic Loan Audit returns exception messages showing the calculated loan APR, points and fees versus the legal limits (including the difference). Our audit also returns payment streams, finance charge worksheets, high cost points and fees worksheets to assist the home owner.
Price $495.00
|
|