What Is an Auditor’s Report?
The auditor’s report is a written letter from the auditor that contains his or her opinion on whether a company’s financial statements comply with generally accepted accounting principles (GAAP) and are free from material misstatement.
The independent and external audit report is usually published with the company’s annual report. The auditor’s report is important for banks and creditors to require that the company’s financial statements be audited before the loan.
How an audit report works
The audit report is a written letter that accompanies the financial statements of a company that expresses its opinion on the company’s compliance with standard accounting practices. The auditor’s report must be submitted with the financial statements of a public company when the profits are reported to the Securities and Exchange Commission (SEC).
ARM check mortgage audit report
If you have a fixed or adjustable-rate mortgage or home equity line of credit, have made extra payments, or just want a professional opinion on the accuracy of your mortgage payments, request a mortgage audit from ArmCheck today. . Consider a mortgage audit if your monthly payment or loan balance seems too high. ArmCheck mortgage audits reveal miscalculations and overcharging in interest charges, payments, and loan balances. Surveys show that these errors occur in up to 40% of all loans. Thousands of homeowners used the audit to “win their case” and get refunds of between $300 and $38,000! These errors occur for many reasons, including inexperienced staff, faulty software, or using the wrong index values for variable rate loans. A mortgage audit will determine if the lender is overcharging you. You will also receive a “Letter of Refund from Lender” to send to the lender for repayment of any overpayment.
Eight months after paying off an adjustable-rate loan on a vacation home in Deltona, Florida, Katherine Lee couldn’t shake the exhilarating feeling that something was wrong.
The Baltimore resident decided to act on his suspicions and hired the loan company Gaithersburg, Maryland, Loantech to review the $ 78,900 adjustable-rate mortgage (ARM) documentation he received and received in 1983.
Loantech concluded that the lender did not correct the additional payments made to reduce the principal balance. The bank charged him more than $ 3,500 and is now asking for a refund.
Consumers often hire loan auditors to examine current loans. Recently, however, a growing number of former ARM borrowers, including the growing number of ARM refinancing and fixed-rate lending, are re-burying their old mortgages, with the help of a loan auditor.
“If you do not check it out you will never know and then that money is gone forever,” said Loantech president David I. Ginsburg.
Many scrap ARMs are ripe for excavation. Earlier this year, 75% of borrowers opted for some type of fixed-rate loan when refinancing ARMs financed by Federal Home Loan Mortgage Corp. (Freddie Mac), a leading provider of home equity to lenders.
Some loan auditing firms contacted reported finding errors in a quarter to a half of the loans they examined.
State contract law generally determines how long borrowers have to seek redress for a mistake, said John Geddes, president of Consumer Loan Advocates, a loan audit firm in Lake Bluff, Illinois. The statute of limitations lasts three to 10 years, he said.
Better yet, some legal experts believe the statute of limitations on these matters will start to run as soon as an error is found, Geddes said.
Even small mistakes quickly become the norm, Ginsburg said. For example, a lender who used an incorrect index value and then used a different method of compensation than the one specified in the mortgage agreement could easily overburden the borrower with $ 100,000 a month, $ 100,000, he said.
Loan auditor Marie McDonnell said she believes she has found another area of ARM errors that goes beyond mathematical errors. A subsidiary of Dime Savings Bank in New York, McDonnell was charged $ 174 million in ARM in New Hampshire for violating a state law prohibiting negative redemption or interest payments on interest. In these cases, the principal balance of the loan increases rather than decreases because the monthly payment is not sufficient to cover all interest charged so unpaid interest is added to the principal balance.
McDonnell, an owner of Mortgage Advisor in Orleans, Massachusetts, said he is looking for similar issues for borrowers with Dime ARM in other East Coast markets.
Dime Savings Bank spokesman David Totaro denied the allegation, saying the bank “still believes it was correct in all respects during the time we made residential loans in New Hampshire.”
For about $100, suspicious borrowers can request a loan autopsy from any of the nationwide auditing services that have sprung up in recent years. Cheaper DIY books are also available from two of the auditing firms.
Verifying the accuracy of interest rate calculations for ARMs begins with the mortgage note and any amendments or additions. These documents set forth the terms of the loan, including the down payment rate, down payment date, down payment amount, date schedule or exchange rate, the definition of the index used, margin added to the value of the index to determine the new interest rate, the rounding method used, and the useful and periodic life or limits or limits of the interest rate.
However, the lender’s greatest potential for error comes from how interest rate changes are calculated, Ginsburg said. The rate change notices provided by the lender provide a way to verify the process.
Borrowers who have not kept these notices may request copies of the documentation from lenders, which federal financial regulators must keep for at least two years of such records, Geddes said.
The same information is found in the loan payment histories that accompany the balance of payments calculated by the former lender when refinancing loans, said Robert Fryer, director of LoanChek, a San Diego-based loan audit firm.
To request a refund, Richard Roll, president of Mortgage Monitoring in Norwalk, Connecticut, recommends writing to the lender stating that the letter under the Cranston-Gonzalez Affordable Housing Act is a “qualified written request.” The law, passed in 1990, gives the lender 20 days to identify the letter and 60 days to resolve the problem.
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.