Certified Forensic loan auditor process

Certified Forensic loan auditor process

Finding a legitimate auditor to conduct your forensic loan audits requires a lot of research on the auditors available so as to avoid scammers who may give you guarantees that they may not necessarily fulfill the scams will include promises that include guarantees of stopping the foreclosure despite the circumstances the other way scammers in this field operate I buy asking clients to send money before providing services or one who urges the clients to sign documents they have not gone through.

The forensic loan audit is a scientifically conducted process that involves investigation of the loan documents to identify incidences of fraud or violations of federal laws in the process of extending the loan to the borrower. The audit is conducted by an auditor who is certified after undergoing training on the procedures of auditing mortgage loans using scientific methods.

The process of forensic loan audits includes identifying the type of fraud that has been committed, the persons involved in the fraud, the loss the borrower has suffered among others and these audits are conducts scientifically using analytical procedures to compare different parts of the business to the loan documents and to also find the information that may have been altered using computer aided audit techniques.

To be able to receive the certification to be a forensic loan auditor, the following are the requirements that one should take into consideration;

  • At least 32hour attendance of the training.
  • Be able to satisfactorily pass a criminal background check.
  • Be able to pass the test after the training.

The auditor is equipped with the necessary knowledge on topics such as:

  • Home owner’s protection act.
  • State and federal discrimination laws.
  • MERS search.
  • SEC search techniques.
  • Review of court transcripts.
  • Legal standing and foreclosure defenses.
  • Underwriting standards and methodologies among others.
  • Predatory loan indicators.
  • Truth in lending Act
  • Loan transaction documentation

After the auditor is conversant with the relevant topics that are required for the forensic audit, they may then be able to perform forensic audits which may be admissible in court. The certification allows the auditors to be used as expert witnesses in court cases where they are required to give an explanation of the findings, the loss suffered and the recommendations to avoid future mistakes.

The processes that are involves in a forensic loan audit include;

  • Planning of the audit to establish the checks that are to be made.
  • Identification of the type of fraud that is being carried out.
  • Determination of the duration of the fraud to establish the damage.
  • Identify how the fraud was concealed from the borrower either by being given wrong or incomplete information.
  • Gather evidence that is admissible in the court
  • Suggest mechanisms that may be used to prevent future cases of fraud.

These steps are carried out either by using computer aided software that may identify missing information, conducting interviews to identify the missing links and errors, comparing of trends to establish where the fraud was committed and  the testing of internal controls to identify the loopholes that may be present.

The audit process requires a conclusive report containing all the findings and recommendations from the audit.  This report is then presented in court by the certified auditor whose testimony will be used by the courts to determine the status of the loan and the damages that may need to be paid.  The auditor should present the findings in a way that people who may not be able to understand the concept of forensic loans may understand the process and the fraud that was carried out. For free consultation please go to https://www.mortgageauditsonline.com/



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