New Forensic Audit Services

Fort Lauderdale, FL-Tools specializing in fraud detection in mortgage origination, servicing and securitization are gaining ground in the current market as lenders and borrowers look into new ways to assist homeowners in distress.

The Consumer Mortgage Audit Center LLC here has added three forensic, due diligence services to the forensic mortgage analyses it has been providing to homeowners' attorneys nationwide for the past two years. The three new service offerings - the rescission finder audit, mortgage servicing history analysis and securitization audit, the company said, "are all subsets of the more comprehensive, forensic mortgage analysis." CMAC's existing forensic mortgage analysis identifies potential deficiencies, discrepancies, errors and statutory violations within the particular mortgage loan transaction.

According to CMAC vice president of operations, Sylvia Alayon, many attorneys rely on comprehensive mortgage audits to build their cases. So depending on the attorney and the specific case, the firm expects these audit products to assist them significantly, reduce attorney work hours, ensure great diligence return on investment and faster aid to homeowners in trouble.

These new offerings are designed to comply with the mortgage industry's Truth in Lending Act. For example, the company said, rescission finder audits include reviews of material disclosures made to homeowner borrowers at closing in addition to analysis of the creditor's calculations pursuant to the Truth in Lending Act. "If material violations are uncovered, attorneys can leverage rescission finder audit results to enable homeowners to exercise their right to rescind the mortgage loan transaction."

Servicing history analyses on the other hand, reviews the servicing of a mortgage by organizations, which as a rule are not affiliated with the lender that originated the loan. Documents reviewed include mortgage legal documents, disclosures, statements, correspondence, banking histories and servicing practices.

These mortgage servicing history analyses help attorneys determine how mortgage rates and payments were applied or adjusted by the mortgage servicer and if loan processing and servicing was done in compliance with federal, state or local lending laws. The securitization audit is another important part of the loan review. It follows the chain of ownership for the mortgage note ensuring there is accurate and transparent data reporting. This type of information is especially important when companies seeking to foreclose upon a property cannot prove that they own the note. It allows attorneys to use securitization audits to end or reverse the foreclosure of a home.

"As attorneys across the country turn to us to gather evidence to defend homeowners with fraud-laden mortgages, we're responding directly to their requests for more service options," she said.

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