Forensic loan audit can help you to find out if there are any anomalies in the mortgage loan that has been extended to you. You can use the forensic loan audit report for your defense in case you encounter any problem while making payments for your loan or you find certain irregularities despite making payments on time. Once the violation has been identified and the specific law that lender or the broker violated has been taken note of, you can send the forensic loan audit report to the lender. You can make use of the audit report for getting the existing terms of your mortgage modified.

Lenders take these reports very seriously as the reports reflect their negligence or in some cases ill motives. Experts are of the opinion that in most cases, state or federal violations are observed. Violations result from either greed, carelessness on the part of the broker or the lender. In case violations are identified, lenders will be penalized financially. For instance, you availed a mortgage loan that required you to pay approximately USD$25,000 as interest payment. If it is found that the loan that was extended to you was manipulated, under such circumstances, your lender may have to return the entire interest money to you.

In case you are facing foreclosure and it is found that your lender has violated state or federal laws, the foreclosure proceedings halt and you don’t make payments to the creditors till the time the dispute isn’t settled. In few cases, you may be required to deposit the mortgage payment in a separate bank account.

How does forensic loan audit work?

The audit is usually performed by a team of legal experts or an attorney. All your loan documents are thoroughly examined and searched for anomalies. This also includes financial disclosures by the lender or the broker during the loan approval process. Under certain circumstances, the legality of the loan is also questionable. Once the examination of your mortgage loan is done, the findings are recorded in what is referred to as the forensic loan audit report.

What does your forensic loan audit report contain?

The findings of the report will throw light on the following –

• The report will help you to know the steps you can take against the lender or the broker.
• It also helps you to find out if your lender/broker has charged unreasonable fees.
• The real terms of the mortgage loan that was extended to you.
• State as well as federal violation, whichever is applicable.

Quoting Marc Bonanni Attorney for Consumer Debt Advocate, “We now perform a comprehensive Predatory Lending analysis on every client coming through our door who is also looking for a loan modification. In almost 100% of the cases, we find violations in RESPA, TILA and in some cases, egregious Article 32 Predatory Lending violations”.