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What Is A Forensic Mortgage (Loan) Audit

A Forensic Mortgage (Loan) Audit is the comprehensive examination of all loan documents to discover Federal and State violations, Deceit, Misrepresentation, Fraud, Unfair Practices, Overcharges and Miscalculations.

The Audit identifies anything done illegally by the lender, broker, appraiser, realtor or other parties involved with your mortgage loan.

The purpose of the Audit is to provide a powerful tool for negotiating with the lender. Violations and possible fraud are the leverage.

http://attorneyauditseminar.com/documents/Warning.png Violations of Federal, State or Local Laws

Using a home as collateral in obtaining a mortgage is covered by numerous federal, state and local laws.  These laws are in place to protect the borrower’s rights when a home is used as collateral in a mortgage transaction.  We review loan documents to determine if there are differences between the disclosure of information in the loan documents and the disclosure of information required by law.

http://attorneyauditseminar.com/documents/Warning.png Fraud In The Factum  

Fraud where misrepresentation causes one to enter a transaction without accurately realizing the risks, duties, or obligations incurred. This can be when the maker or drawer of a negotiable instrument such as a promissory note is induced to sign the instrument without a reasonable opportunity to learn of its fraudulent character or essential terms. Fraud in the factum usually voids the instrument and is a defense against a holder in due course.

http://attorneyauditseminar.com/documents/Warning.png Fraud in the Inducement


It is intentional deception resulting in injury to another person. Using deceit to cause someone to act to their disadvantage as in signing an agreement, misleading the other party as to the facts upon which they will base their decision to act.

Example: You don't have to read the rest of the contract - it is just routine legal language “just sign here”.

http://attorneyauditseminar.com/documents/Warning.png Fraud and Negligent Misrepresentation 

Were any representations, statements, or comments, written or oral made by the loan officer, broker, escrow or anyone else which contradicted the terms of the documents? When a licensed mortgage professional makes errors it is tantamount to negligent misrepresentation.

http://attorneyauditseminar.com/documents/Warning.png Excessive Fees

Were there any excessive fees or improper charges made by the lender or loan broker? Are there any deceptive, abusive or predatory lending practices or an excessive prepayment penalty?  Is your lender now charging you illegal fees in your Escrow account?

http://attorneyauditseminar.com/documents/Warning.png Breach of Contract

The note and its attachments are a contract. The lender must follow all the terms of the contract such as the way the interest is calculated, and the penalties are assessed. Were there any terms in the contract which the lender failed to follow? The loan Audit may discover deceptive lending practices or any other type of mortgage compliance issue the borrower then has the leverage to fight the lender and win.

Some Of The Things We Review and Document That Will Lead To The Above Findings

New Discoveries of Fraud Are Being Found by Analyzing
the Life of the Loan History and Review of the
Original Appraisal