What We Do
What is a Forensic Loan Audit?
The single most important way to determine whether you have been the victim of Predatory Lending, Truth-In-Lending, RESPA, mortgage fraud or deception is through the use of a Forensic Loan Audit. To effectively perform a compliance audit, you must have extensive experience in the loan process and be able to reverse engineer what the loan officer did. A single residential real estate file can be covered by numerous consumer protection laws and regulations – RESPA, Reg. B (ECOA), Reg. C (HMDA), Reg. Z (TILA), Fair Housing Act, and Flood Disaster Protection Act for starters. The applicability of any law depends on various factors that may, or may not, be evident in the loan file.
We review all loan documentation. We examine your closing documentation as well as request a copy from the lender. These documents are then reviewed to determine if the loan is in compliance with Federal and State Laws. We examine the fees to see if they were in excess. We look for fraud, deception and whether bait and switch might have occurred. We also look for miscalculations of APR for possible TILA violations. The applicability of any law depends on various factors that may, or may not, be evident in the loan file. We extensively interview the borrower to see what representations were made by the loan officer. We also attempt to interview the loan officer in order to give an unbiased and objective report.
We look for:
- Constructive Fraud
- Fraud and Negligent Misrepresentation
- Negligent Misrepresentation
- Breach of Contract
