According to a Consumer Mortgage Audit Center assessment of thousands of mortgage documents, 98 percent of all mortgages may be eligible for renegotiating owing to violations of the Truth in Lending Act (CMAC). Most infractions typically manifest as incomplete paperwork, inaccurate “good faith” estimations, concealed payments, double-dipping brokers, and borrowers who lack proof of income.
The Consumer Mortgage Audit Center conducts thorough audits of mortgage documentation every day, and serious and occasionally purposeful mortgage breaches are identified every day. There are several fundamental things that every customer should consider before obtaining a mortgage, even though not all mortgage infractions are necessarily intentional on the part of financial institutions.
The five most typical mortgage infractions that violate the Truth in Lending Act and Real Estate Settlement Procedure Act, according to CMAC, are as follows:
Paperwork is never enjoyable to deal with, but there are ways homeowners can determine if they have been the victim of a mortgage violation. An excellent initial step is to compare the same lender’s good faith estimate with the HUD-1 paperwork, which buyers receive at settlement and which details the majority of expenditures. It could be time to call an attorney if the statistics on your HUD-1 and your good faith estimate differ.
A consulting and due diligence firm specializing in mortgage forensic research and analysis is called the Consumer Mortgage Audit Center (CMAC). The team of mortgage specialists at CMAC is highly skilled, includes members of the American College of Forensic Examiners Institute, and has a total experience of more than 80 years in both mortgage finance and law.
How to Conduct a Legal Mortgage Audit
A professional mortgage auditor typically conducts a forensic mortgage audit, which thoroughly examines the mortgage papers. A forensic mortgage audit is performed to find any loan inconsistencies, including any violations of the Federal Truth in Lending Act. A foreclosure procedure can be stopped by reviewing mortgage documentation. You should know the laws and guidelines governing the mortgage procedure to conduct a proper audit:
In some ways, lenders should be concerned since a flurry of prospective lawsuits may come their way. Given that they typically involve individual loan amounts, these lawsuits may not always be expensive. Still, they are irksome, and the costs to defend the institution from these actions can add up quickly. In addition, the lender is responsible for covering all closing fees and finance charges if homeowners successfully request to cancel a loan.
The industry should also be concerned since, according to authorities on home loan revocations, it is very difficult for a bank to establish a strong defense against borrowers who can show that their loan contains flaws. When faced with a genuine rescission claim, lenders find it incredibly challenging to defend themselves in court.
On the other hand, there is some balance because it can be expensive for the homeowner to schedule a loan audit and retain legal counsel.
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.