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All lenders are required to operate under certain rules, regulations and procedures when taking loan applications. Those rules, regulations and procedures are spelled out in the Real Estate Settlement Procedures Act (RESPA), the Truth In Lending Act (TILA), Equal Credit Opportunity Act (ECOA) and Fair Credit Reporting Act (FCRA). In addition, State specific laws and regulations may also apply.
Forensic Audits Reveal Widespread Violations
Before your client walks away from their home or signs-off on an a loan modification, you should know that
over 80 percent of audited home loans show clear evidence of non-disclosure violations, accounting "errors"
and outright fraud.
- What if your client could stop their "ARM" payment from resetting to a higher payment?
- What if your client could obtain a deficiency waiver and simply walk away?
- What if your client could rescind their mortgage and stay in their house?
Forensic Audits Protect Your Client and Your Law Firm.
Loan modifications can be an effective solution for many clients, but proceed with caution. Despite your law firm's best efforts, according to the Office of Comptroller of the Currency (OCC) statistics, after eight months, 58% of borrowers had re-defaulted.
Before you approve a loan modification or foreclosure settlement, go the extra mile. Was the original loan in compliance with Federal and State Lending laws - How would you know? Compliance issues can be hard to spot and costly to your client and your law firm if not discovered before you settle.
Forensic Audits Can Put You In The Driver's Seat
Remember, loan violations are widespread. Until recently lenders have successfully kept these practices out of the public eye and have ridden roughshod over homeowner's rights. With proof in your hands, your law firm can turn the tables on a predatory lender or aggressively fight that foreclosure in court.
