Mortgage origination and loan securitization 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. Well, 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, many of the causes of action listed here have passed their statute of limitations. In addition, most courts are not recognizing the merit of the “MERS” argument, and have even barred attorneys from bringing certain actions associated with it 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 securitization audits, which include records of mortgage transfers, can show if your note was pooled into a mortgage backed security (securitized), 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.
A mortgage audit conducted by an experienced mortgage attorney can often determine if any potential fraud exists with 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 tools in properly defending a wrongful foreclosure, attempting to remove clouds on title, or finding out who owns a mortgage loan.
Mortgage Loan Audits – These audits analyze a homeowners’ original loan documents for evidence of loan origination fraud, including violations of the TILA, RESPA, and HOEPA federal laws, disclosure violations, stated income violations, and many other fraudulent or predatory practices. To get an insider’s analysis of mortgage audits, and MRP’s position regarding these audits, read the article…
Bloomberg Mortgage Loan Securitization Audits – These audits search for a homeowner’s mortgage note within a Mortgage-Backed Securities Wall Street Trust. If the homeowner’s 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”.