Securitization and Mortgage Loan Audits

Securitization and mortgage loan audits have basically been reduced to having very little value to homeowners. Unfortunately, some unscrupulous companies sell these audits to prey on desperate homeowners. They often offer to perform the audit free of charge unless violations are discovered.

Well, the fact is that more than 80% of the loans originated during the last mortgage flurry had some kind of violations. The question then becomes the viability of actually pursuing the violations by taking your lender to court. Unfortunately, if your case is based on MERS, missing paperwork, quiet title, or even mortgage origination issues, you now face an uphill battle. For a loan originated during the mid 2000’s, most causes of action have passed their statute of limitations. In addition, most courts are not recognizing the merit of the “MERS” argument. Some states have even barred attorneys from bringing actions associated with MERS and quiet title in states like California.

“When we perform the audits, we may identify RESPA and TILA violations, uncover chain of title issues and even fraud. However, if you are not willing to sue your lender over these findings, the audits are only tools for legal leverage which may or may not help in negotiations.”

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Mortgage Loan Audits

These audits analyze a homeowners’ original loan documents for evidence of loan origination violations. Violations can include fraud, and violations of the TILA, RESPA, and HOEPA federal laws. they can also include disclosure violations, stated income violations, and other fraudulent or predatory practices.

A mortgage audit conducted by an experienced mortgage attorney can often determine if any potential fraud exists. The attorney will need to analyze mortgage documents on file at the local County Clerk’s Office. As legal strategies for foreclosure defense continually evolve, some attorneys find securitization and mortgage audits to be useful. They are using them as tools for formulating lawsuits against wrongful foreclosure. They also use them to remove clouds on title, or finding out who owns a mortgage loan.

Bloomberg Mortgage Loan Securitization Audits

These audits search for a homeowner’s mortgage note within a Mortgage-Backed Securities Wall Street Trust. If your loan is found in a Wall Street Trust, this audit provides attorneys with the information they need to challenge assignments or transfers of a mortgage note. Equally important is the “pool performance” section of the audit. This section also identifies any discounts in the purchase of your note, as well as the income performance of your mortgage’s “pool”.

Mortgage securitization audits can show if your note was pooled into a mortgage backed security (securitized). It will include records of mortgage transfers, and all the parties associated with the mortgage securitization process. This information can then be used as a “road map” to identify those parties and take legal action to force each party to prove a chain of assignment and their legal standing to collect payments and foreclose on your property.

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