What Is A Forensic Mortgage Audit And How Can It Help You?

    By Crystal Wilburn

    [dropcap]M[/dropcap]any homeowners in the United States today may have fallen victim to fraudulent or predatory lending practices. If your client is having difficulty paying their mortgage-you have options, especially if there may be proof that their lending institution mislead or failed to disclose the terms of their loan properly. In many cases, clients who have hired Wellspring Mortgage Services to perform a Mortgage Audit, have been able to avoid foreclosure, have their principal reduced, switch their adjustable to a fixed rate loan or even have their payments lowered.  We are on your side and will fight to ensure that their rights have not been violated. There are consumer protection laws assisting homeowners fight against lenders who are trying to increase their payments or foreclose on their homes. With the help of Wellspring Mortgage Services you can increase the success of having a mortgage modified to a payment you or your client can afford.

    A Mortgage Loan Document Audit is a comprehensive investigation of the documentation in the homeowners existing loan(s). We utilize special state and federal mortgage loan post compliance software to calculate and identify violations, but we don’t stop there, we hand audit every file checking for any RESPA, TILA, HOEPA, Fraud, Loan Servicing Violations, Breach of Contract, Common Law, and Compliance with all State and Federal Laws.  We also look for any violation that would allow the client to challenge the validity of the debt and halt foreclosure in it’s tracts. This is prepared in two formats one is a Loan Audit Summary for you clients records and the other is in the form of a Qualified Written Request (QWR) prepared and ready to be sent to their Lender and/or  Foreclosing Attorney.

    The forensic Loan document audit is a significant part of a loan modification request.  Most audits performed reveal major violations in TILA (Truth in lending Act), A law passed in 1968 and The Real Estate Settlement Procedures Act (RESPA) passed in 1974.

    Both Laws are designed to protect consumers in credit transactions by requiring clear disclosures and costs in the terms of their loan. Our audits also reveal violations in predatory lending, The HOEPA section 32 Act, Usury act and Real Estate Fraud Violations.

    A Forensic Mortgage Loan Document Audit can be used as pressure for a lender to modify their loan based on the Federal and State violations we discover.

    The Process Overview.

    Step 1:

    You provide Wellspring Mortgage Services  with your complete loan closing packet, along with any and all correspondence from your lender/servicer that you have kept as your records:

    Step 2:

    An In-depth audit of all loan documents to search for errors, omissions, and to verify compliance with:

    • Real Estate Settlement & Procedures Act (RESPA)
    • Truth in Lending Act (TILA)
    • State and Federal Predatory Lending Laws
    • Fair Housing Act (FHA)
    • Equal Credit Opportunity Act (ECOA)
    • Home Mortgage Disclosure Act (HMDA)

    Did you know that for every RESPA violation, your lender is liable to you in the amount of a minimum of $200.00 and a maximum of $2000.00

    Step 3:

    Predatory Lending/Servicing Screening to review loan documents for:

    •  Excessive Fees
    •  Improper Charges by your Lender
    •  Excessive Prepayment Penalties
    • Tangible Benefits to the Borrower
    • Did you know that there are State and Federal Predatory Lending Laws that limit the amount of fees that are allowed to be charged, as well as caps on the interest rates?  If you are having a tough time paying your mortgage you may be the victim of a of a Predatory Loan.

    Step 4:

    • Extensive audit of the TILA Documents to check for human errors or computer glitches that can add thousands of dollars in interest to your mortgage if left undetected.
    • Did you know that an interest rate incorrectly entered as 7.69% instead of 6.79% will result in an overcharge of more than $54,000 in interest over the life of a loan (based on a 30-year $250,000 mortgage)?

     Step 5:

    • Wellspring Mortgage Services researches the validity of your mortgage debt by:
    • Extensive search of public records to ensure your mortgage lender has filed proper security instruments with the county of record.
    • Did you know that you could be making payments to a lender who may not hold a security instrument on your property?

    Step 6:

    Wellspring Mortgage Services will provide you with your mortgage audit results as well as information on where to go from the audit:

    • What to do if RESPA/TILA violations have occurred, and who to contact
    • What type of monies are available to your specific loan type, if you need financial help
    • How to request information legally from your lender or servicer to get issues resolved effectively and efficiently.


    For more information, contact Crystal Wilburn at cwilburn@wellspringmortgage.com or visit www.wellspringmortgage.com.


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