I’ve redone several forensic loan audits for people who have obtained forensic loan audits through other sources. The most common mistake I see in other audits is that they fail to see the big picture that is required to find things that can actually help a homeowner. Let’s quickly look at why my forensic loan audits are more thorough than a simple TILA and RESPA review.
A TILA violation, for example, can be used to offset a foreclosure judgment, or possibly rescind a loan within three years. While this sounds great in theory, most people would rather avoid a foreclosure and foreclosure judgment altogether over having a reduced judgment against them. Very few people are even able to take advantage of a rescission as they have insufficient cash or equity to give the lender their original loan amount back.
RESPA violations also have a very short 1-3 year statute of limitations in which to take action, and are often unusable as a source of relief when found.
Often, the actual core mortgage documents reviewed by a TILA and RESPA forensic loan audit are not the source of relief for homeowners. The surrounding documents, receipts, correspondence, and stories paint the picture of what really happened.
As an example, on January 26, 2011 an Attorney, Title Company Employee, and Builder in Texas were found guilty of wire fraud and money laundering in a construction mortgage fraud scheme. The core mortgage documents (Deed, Note, Truth In Lending, HUD, etc.) were not the source of this conviction. It required stories, records, surrounding documents, and accounting of funds to prove the fraud.
Another common reason TILA and RESPA forensic loan audits fail is the large amount of predatory and unfair loans put together by large financial institutions with very savvy computerized document systems. These very expensive computerized document systems are less likely to make mistakes that will be uncovered in a TILA and RESPA forensic loan audit. The actual story, advertisements, loan application, bank statements, surrounding documents, and credit profile reveal if loans are predatory, deceptive, or unfair.
For example, when the Attorney General of California sued Countrywide on behalf of homeowners in California, TILA and RESPA violations are ignored, and the AG focuses the lawsuit on unfair and deceptive practices.
This is why when I perform a forensic loan audit, I examine all the available documents and often request you to find additional key documents from specific sources. The fact that a TILA or RESPA violation occurred is important, but the more important reason is to understand what purpose or fact said violation is hiding, and what sources of relief for homeowners we can find.
If you are in need of mortgage litigation support or mortgage forensic audits to help keep your home, contact me here. If you are a lawyer looking to provide your clients with better service and an improved chance of keeping their home, contact me here.