Certified Forensic Loan Auditors, LLC


Upcoming Classes
09/20 SAN DIEGO 08/30 SAN DIEGO 08/12 ORLANDO 08/02 SAN DIEGO 07/12 SAN DIEGO 06/21 SAN DIEGO 05/31 SAN DIEGO 05/10 SAN DIEGO 04/26 SAN DIEGO 04/12 SAN DIEGO 03/22 LOS ANGELES 03/08 SAN DIEGO 02/22 LOS ANGELES 02/08 SAN DIEGO 01/25 LOS ANGELES 01/11 NEW YORK 12/14 LOS ANGELES 11/16 SAN DIEGO TBD: WASHINGTON TBD: ORLANDO Future dates TBD, check website regularly for updates

Our Business

CERTIFIED FORENSIC LOAN AUDITORS, LLC is a network of experienced certified forensic loan auditors specializing in the research and analysis needed to provide attorneys and loan modification companies with the Forensic Loan Audits& Qualified Written Requests that they need to even the playing field with Lenders and successfully negotiate (1) Principal Reductions, (2) Interest rate Reductions and (3) Loan Modifications on behalf of their homeowner clients.

As lenders try to minimize overall losses sustained from excessive foreclosures, many of the attorneys and loan modification companies have implemented the use of Forensic Loan Audit in order to gain legal leverage against these loan servicers to ensure from a compliance standpoint that the borrower’s interests have not been jeopardized. This trend is gaining momentum from both an offensive and defensive standpoint, and the loan audit process will be the focus of activity in the coming months ahead as Lenders are under increased pressure from the Federal Government to work with homeowners to modify their loans.

Our Management team of seasoned real estate professionals has over 50 years experience in loan origination, mortgage processing, escrow and bank underwriting with some of the country’s top lenders, independent mortgage brokerages, processing and escrow companies such as New Century, The Money Store and Countrywide. It’s this experience in the intricacies of Sub Prime and Option ARM loans that allows FLAC auditors to uncover the myriad of lender mistakes in RESPA, ECOA, TILA, HMDA, and APR that exist in so many of the mortgage loans in the market today. We also have a network of attorneys who specialize in real estate law and suing lenders for errors on loan documentation.

The need for fairness and justice exists among the millions of homeowners who are unknowing victims of predatory mortgage lending. Our goal is to empower consumers with the necessary knowledge and ammunition to ‘fight back’ against their ‘bad loans’ in order to protect their ‘American Dream’. We identify and expose those deceptive, fraudulent, abusive and predatory lending practices that plague consumers, many of which can be uncovered within your mortgage loan documents.

We are a consumer advocacy and mortgage due diligence firm, we have been at the vanguard when it comes to investigating & proving predatory lending in consumer mortgage loan documents. We’ve assisted in the prosecution of unscrupulous lenders for their predatory lending activities. We are recognized as one of the nation’s premier mortgage auditing company and are praised over our sound business practices. We are comprised of counselors, negotiators, paralegals and independent auditors working exclusively with a network of competent attorneys to help you enforce your rights to a fair and legal mortgage. Our use of cutting edge mortgage banking technology combined with our experienced legal team and our extensive relationships with most major banking institutions assures that our consumers have the best team working to obtain the best solution and outcome to your current mortgage situation. This service is very specialized and imperative in identifying if a borrower is a victim of predatory lending. Our team of specially trained experts reviews all loan documents and performs a thorough investigation for miscalculations and to determine if the loan terms are accurate, truthful, and met the requirements of the applicable federal statutes.

Typically, our Forensic Loan Audits uncover such violations as:

Certified Forensic Loan Auditors' Evaluation of Each File for Violations of “RESPA”

The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute, first passed in 1974. It requires lenders to give a good faith estimate (GFE) of all closing costs that borrowers must pay. It was designed to help borrowers from being forced to pay “hidden fees” at closing. Typical violations of RESPA include (1) Statutory Damages, (2) Attorneys fees, and in many cases (3) Treble Damages [i.e. 3 times the amount.]

Certified Forensic Loan Auditors' Evaluation of Each File for Violations of “TILA”

The Truth in Lending Act (TILA) requires lenders to disclose the terms of a loan, including the total amount of the loan, the annual interest rate, and the number, amount and due dates of all payments necessary to repay the loan. The TILA also requires additional disclosures and places many restrictions on mortgages. The most often sought remedy under TILA is rescission of the loan.

Certified Forensic Loan Auditors' Evaluation of Each File for Violations of “FCRA”

The Fair Credit Reporting Act (FCRA) was designed to prevent inaccurate or obsolete information from entering or remaining on a credit report. The law requires credit bureaus to adopt reasonable procedures for gathering, maintaining and disseminating information. Commons remedies for violating FCRA are (1) statutory damages and (2) Attorney fees

Certified Forensic Loan Auditors' Evaluation of Each File for Violations of “ECOA”
The Equal Credit Opportunity Act (ECOA) was designed to ensure that all qualified people have access to credit and prohibits discrimination based on sex, marital status, age, race, national origin, or public assistance benefits received.

Certified Forensic Loan Auditors' Evaluation of Each File for Violations of “HOEPA”

Home Ownership Equity Protection Act state and local high costs. Federal (HOEPA), state and local high cost thresholds. Certified Forensic Loan Auditors compares the loan data collected during a forensic loan audit to the calculated high cost thresholds as defined by the Home Ownership and Equity Protection Act (HOEPA) and applicable state and local jurisdictions.

Certified Forensic Loan Auditors' Evaluation of Each File for Violations of “Underwriting Standards”

Certified Forensic Loan Auditors' Evaluation of Each File for Violations of “Underwriting Standards”

The purpose of an underwriter is to determine whether the borrowers can qualify for a loan and if the borrowers have the ability to repay the loan. This determination of the ability to repay a loan is based upon employment and income in large measure, which is proved by getting pay stubs, 1040’s, W-2’s and a Verification of Employment and Income on the borrowers.

If an underwriter has evaluated the loan properly, then there should be no question of the ability of the borrower to repay the loan. Debt ratios will have been evaluated, credit reviewed and a proper determination of risk made in relation to the loan amount. Approvals and denials would be made based upon a realistic likelihood of repayment.

Certified Forensic Loan Auditors' Evaluation of Each File for Violations of “PREDATORY LENDING”

The terms “abusive lending” or “predatory lending” are most frequently defined by reference to a variety of lending practices. Although it is generally necessary to consider the totality of the circumstances to assess whether a loan is predatory, a fundamental characteristic of predatory lending is the aggressive marketing of credit to prospective borrowers who simply cannot afford the credit on the terms being offered.

While such disregard of basic principles of loan underwriting lies at the heart of predatory lending, a variety of other practices may also accompany the marketing of such credit.

Targeting

Targeting inappropriate or excessively expensive credit products to older borrowers, or to persons who are not financially sophisticated or who may be otherwise vulnerable to abusive practices, and to persons who could qualify for mainstream credit products and terms

Loan Flipping & Equity Stripping

Repeated refinancing of borrowers into loans that have no tangible benefit to the borrower. Can be the same lender or different ones. Loans and refinances whereby equity is removed from the home through repeated refinances, consolidation of short term debt into long term debt, negative amortization or interest only loans whereby payments are not reducing principle, high fees and interest rates. Eventually, borrower cannot refinance due to lack of equity.

High Debt Ratios

This is the practice of approving loans with high debt ratios, usually 50% or more, without determining the true ability of the borrower to repay the loan. Can often be seen with Prime borrowers approved through the Automated Underwriting Systems.

High Loan to Value loans

Loans offered to a borrower having little or no equity in the home. Usually adjustable rate mortgages that the borrower will not be able to refinance out of when the rate adjusts due to lack of equity.

Fraudulently Caused to Execute Loan Documents

Adjustable rate mortgage loan was an inter-temporal transaction on which Plaintiffs had only qualified at the initial teaser fixed rate, and could not qualify for the loan once the interest rate terms change.

Deception, Fraud, Unconscionable

Is marketed in a way that fails to fully disclose all material terms. Includes any terms or provisions which are unfair, fraudulent or unconscionable. Is marketed in whole or in part on the basis of fraud, exaggeration, misrepresentation or the concealment of a material fact. Includes interest only loans, adjustable rate loans, negative amortization and HOEPA loans.

Stated or No Income/No Assets

Is based on a loan application that is inappropriate for the borrower. For instance, the use of a stated-income loan application from an employed individual who has or can obtain pay stubs, W-2 forms and tax returns.

Lack of Due Diligence in Underwriting

Is underwritten without due diligence by the party originating the loan. No realistic means test for determining the ability to repay the loan. Lack of documentation of income or assets, job verification. Usually with Stated Income or No documentation loans, but can apply to full documentation loans.

Inappropriate Loan Programs

Is materially more expensive in terms of fees, charges and/or interest rates than alternative financing for which the borrower qualifies. Can include prime borrowers who are placed into subprime loans, negative or interest only loans. Loan terms whereby the borrower can never realistically repay the loan.

Mandatory Arbitration Clauses

Pre-dispute, mandatory, binding arbitration clauses limit the rights of borrowers to seek relief through the judicial process for any and all claims and defenses the borrower may have against the mortgage lender, mortgage broker, or other party involved in the loan transaction.

Certified Forensic Loan Auditors Evaluates Each File for Violations of “Common Law Principles”

CONSTRUCTIVE FRAUD

Material facts include the terms of the loan, whether there is a prepayment penalty, or any other information which a reasonable borrower would want to know before accepting the loan. Did the broker or loan officer or anyone working for the broker or loan officer fail to disclose any material facts to the borrower?

FRAUD AND NEGLIGENT MISREPRESENTATION
Were any representations, statements, or comments, written or oral made by the loan officer, broker, notary or anyone else who contradicted the terms of the documents?

NEGLIGENT MISREPRESENTATION
When a mortgage professional makes errors which a reasonably diligent mortgage professional would not have made, he or she may have made a negligent misrepresentation.

BREACH OF CONTRACT
The note and its attachments are a contract. The broker must follow all the terms of the contract such as the way the interest is calculated, and the penalties it assesses. Were there any terms in the contract which the lender failed to follow?

BREACH OF FIDUCIARY DUTY

And many, many, more…….

Legal Disclaimer - Not Legal Advice

The information presented on this Web site is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area. This information is not intended as legal advice and may not be used as legal advice. It should not be used to replace the advice of your own legal counsel.

Always consult an attorney for your state laws on any legal decision you need to make. This website is for information purposes and is not specific advice to any one reader.

Disclaimer - Certified Forensic Loan Auditors, LLC is exclusively a business-to-business litigation support company. Our service is provided to licensed attorneys only. We do not assist homeowners/borrowers in foreclosure.

It is illegal for loan-modification consultants and businesses to charge up-front fees for their services. Additionally, individuals and businesses offering mortgage-foreclosure consulting, loan-modification and foreclosure-assistance services must register with the California Attorney General’s office and post a $100,000 bond.

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