First American Offers New ARM Portfolio Audit

First American Outsourcing and Technology Solutions has developed a new auditing solution designed to reduce the cost and risk of servicing, acquiring and selling adjustable-rate mortgage portfolios. The solution identifies data issues with existing ARM portfolios and can "scrub" loan-pool acquisitions during the transfer and boarding process or as pre-sale due diligence. The new service can correct errors uncovered by the audit and re-post the changes to the servicer's system. Specifically, the solution can re-amortize and repair loan files and customer histories and automatically generate corrected borrower loan statements. The highly automated, scalable solution identifies exceptions and provides comprehensive loan work-ups for clients. Audits can be conducted 24 hours a day, six days a week and maintain a 99.97% data accuracy rate. The ARM Audit and Repair offering includes triple-key data auditing, historic re-amortization of ARMs, forensic loan history analysis, and due diligence and pre-acquisition or pre-sale scrubbing. "Industry-wide as much as $350 billion of unsecuritized ARMs are still held in portfolios," said Scott Brinkley, executive vice president of First American Outsourcing and Technology Solutions. "Whether they are traded or retained by the servicer, there are significant data issues that can result in incorrect rate adjustments, defaults, foreclosures and lawsuits."