Tips in Finding a Solid Forensic Loan Auditor
While it is widely known and blogged practically all over the internet that there are mortgage modification scams all over the country, it has come to our attention that at least a few of these scammers are now jumping into the forensic mortgage auditing business. Here are some rules of thumb to follow if you are looking for a solid forensic loan auditor. First, make sure they are certified by the National Association of Mortgage Underwriters. NAMU certifies auditors who have gone through a fairly rigorous class held by Certified Forensic Mortgage auditors and passed a test at the end of the week. While the class was comprehensive and exhausting, the test was easy so do not use this as your only evaluation criterion. This will at least separate out those who have been exposed to appropriate technique and exposed to the violations known to be useful in the everyday litigation of foreclosure defense, quiet title actions, RESPA, TILA, Regulation Z, HOEPA, Constructive Fraud and other aspects of subprime predatory mortgage lending.
Secondly, get references from “Attorneys” who use their forensic mortgage audits, not from homeowners. Homeowners become overly hopeful from the sales antics of purported forensic auditing shops when the associates focus on making money rather than results. There is software being sold all over the internet for $79.00 that purports to create a forensic loan audit. It is worthless. Someone working from their stepvan on a wireless connection could easily use this software, create a website and sell clueless homeowners an audit that would be absolutely worthless to the homeowner or an Attorney representing this unfortunate homeowner. Make as a part of your search the specific demand to have the names of at least two competent attorneys who will vouch for the value of the forensic audit for that auditor….for the purpose of litigation.
Make sure the audit addresses the remedies for a particular violation. For example, regulation Z (which implements the Truth in Lending Act) sets the base line for many underwriting disclosures. It specifically requires that the finance charge on the final truth in lending disclosure be disclosed within $100 accuracy and $35 accuracy in the event of a foreclosure action. One particular remedy in the event of a non-purchase money refinance loan understated by more than these tolerances is Rescission. The audit should not only identify the under writing errors, but show potential remedies available, whatever statutes of limitation apply (which in this case is 3 years) and site applicable case law to support the conclusion. Further, make sure the audit identifies not only the case law supporting the violations but the statutes violated. Additionally, supplemental material related to UCC (universal commercial code) is valuable in the heat of litigation.
