What is a Forensic Loan Audit?

Forensic Loan Audits are designed to identify non-disclosure violations, accounting "errors", predatory lending practices, and outright fraud. Until recently lenders have successfully kept these practices out of the public eye and have ridden roughshod over homeowner's rights. Many attorneys now routinely perform Forensic Loan Audits prior to recommending a loan modification or as an overall part of their foreclosure defense strategy.

Attorneys perform Audits looking for violations of state and federal fair lending laws including, but not limited to: the Truth-In-Lending Act (TILA); the Real Estate Settlement Procedures Act (RESPA); the Equal Credit Opportunity Act (ECOA), the Fair Credit Reporting Act (FCRA).

Are loan violations common?

Yes. Predatory Lending is unfortunately quite common as are Truth in Lending Act violations. In fact, according to the National Fair Housing Alliance, over 50% of borrowers who received high-cost subprime loans could have qualified for lower cost prime loans. And, experts agree that over 80% of all audited loans revealed one or more errors.

Home owners attempting loan modifications also face difficulties. A study of loan modifications by Alan M. White, a member of the Federal Reserve Board's consumer advisory council, found that banks failed to reduce the principal balance in 98 percent of the time? And, nearly 50 percent of the time banks actually increased the monthly payment!

How can we help your law firm?

Evidence of a single TILA violation may be enough for your attorneys to stop a foreclosure. With proof in your hands, your law firm can turn the tables on predatory lenders. Not every loan has violations, but unless your law firm audits the loan, how would your client know -- how would you know?

If your law firm provides Forensic Loan Audits, or your are planning to do so prior to concluding a loan modification, or as an overall part of your foreclosure defense strategy, our auditing staff is ready to assist you. Working under your attorneys' direction, our auditors will conduct a complete review of your client's loan documents; work with your attorneys to identify possible violations; and prepare the final audit report documenting actionable violations uncovered during the review.

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.