Escrow Audits are designed to determine whether your client's servicing agent overcharged them or applied questionable servicing fees to their account. In many cases, homeowners taking out a mortgage are asked to set-up a reserve account or an escrow account. In such cases, a portion of the homeowner's mortgage payment is credited to the account to ensure the future payment of property taxes or insurance. Not all homeowners are required to escrow funds, but such an account may still exist. In either case, the servicing agent can charge against it, creating a balance due that your client may be obligated to pay.

Why haven't I heard about this process before?

Most homeowners simply don't understand all of the fees and costs that are added to their loan and take their mortgage statement at face value. Consequently, homeowners often simply pay the amount shown without reading the rest of their statements and often do not contact legal counsel because they are unaware of the damage inflicted upon them by the servicing agent.

Are these errors common?

Yes. Government studies show that fully two-thirds of all escrow accounts revealed overcharges. Common servicing errors range from simple miscalculations of monthly statements to non-payment of property taxes or insurance premiums. But, even a simple mistake by a homeowner such as failing to notify a lender of a change in insurance carriers can result in a lender purchasing expensive insurance under the belief your client's insurance had lapsed. Escrow problems are common. If you client was overcharged, how would you know?

How can this report help my client?

Working under the supervision of our client attorneys, AmStar's forensic team will review your client's escrow and identify overcharges and questionable fees that have been charged to their account. If your client's mortgage statements do not match the numbers in the audit report, your client's escrow account may have been overcharged. In the event of an action against the servicing agent by your firm to recover overpayments, our experts will be available to testify at no additional charge.

What about professional liability?

Practicing law is difficult in the best of times and even when your firm does its best, cause for complaints always seem in ready supply. Loan modifications can be an effective solution for many clients, but proceed with caution. Despite your best efforts, according to the Office of Comptroller of the Currency (OCC) statistics, after eight months, 58% of borrowers had re-defaulted. Conducting a Loan Servicing review ensures that your client made a full informed decision. Conducting the review also ensures that you left no stone unturned and lets you close that client file with confidence.

If you would like to learn more about Amstar's Forensic Loan Auditing Services, contact us toll-free at
877-550-5878, drop us an e-mail at sales@amstarlit.com, or order now.