FDIC Report Reveals Institutions Do Not Comply With The Most Basic Law (1)

• 83% of the institutions examined were cited for significant compliance violations
• 43% of those institutions are "repeat" offenders
• 85% of those repeat offenders were highly rated by the FDIC for their in-place compliance process

Subprime related cases filed exceeds the total handled by the RTC over the multi-year S&L period(2)

• 43% are borrower class actions related to consumer protection laws
• Each of the top subprime lenders is named in at least one borrower class action

Predatory Lending In California(3)

• 73% of all borrowers saw key loan terms (interest rate, fixed vs. adjustable mortgage, prepayment penalty) change for the worse at the closing of the loan as compared to what represented to them
• 61% of all borrowers had loans containing prepayment penalty provisions which lock borrowers into bad loans by assessing a fee of several thousand dollars if borrowers pay off their subprime loans early
• 64% of borrowers reported refinancing their home loans from two to six times, suggesting widespread "loan flipping" and "equity stripping" by lenders
• 39% of borrowers reported that the idea to take out a loan secured by their home came from the marketing of subprime lenders

More than 4 out of 5 audits performed reveal major TILA, RESPA, Predatory Lending and Real Estate / Mortgage Fraud violations

(1), (2) FDIC Office of Inspector General Report

(3) The California Reinvestment Committee Study

LOAN DOCUMENTS AUDITS:

The Subprime mortgage meltdown and subsequent housing and credit crisis have required many CPAs, real estate and bankruptcy attorneys and attorney-based loan modification companies to gain a deeper understanding of the complex world of residential mortgage compliance, loss mitigation and loan modification in order to serve their foreclosure and bankruptcy clients. Financial Relief Attorney Services' loan documents audit expedites investigative examinations of mortgages by automatically testing loans against a wide range of important federal, state, and municipal laws and regulations such as anti-predatory lending / high-cost legislation, Truth-In-Lending Act (TILA) APR and finance charge disclosures, and state consumer credit laws. CPAs, attorneys and attorney-based loan modification companies rely on Financial Relief Attorney Services' loan documents audit to quickly identify potential regulatory violations, empowering them with the information they need to advise their clients.

The loan documents audit reviews the mortgage loan file for compliance with over 330 federal and state mortgage lending laws, including regulatory requirements related to:

• Truth In Lending
• HOEPA (Section 32)
• Predatory lending
• Usury
• Prohibited fees
• Fees limits or other restrictions
• Higher-rate, higher-risk, higher-priced, subprime, nonprime, and rate spread laws
• Prepayment penalty enforceability
• Late fees and grace periods
• Interest calculation and accrual requirements
• Debt-to-income requirements
• Loan-to-value requirements
• Negative amortization prohibitions
• Balloon payment prohibitions
• Payment and other term limitations
• Escrow and impound restrictions
• Critical aspects of the eligibility requirements of the Home Affordable Modification Program

Performing a loan documents review requires a strong understanding of mortgage loan documents. Financial Relief Attorney Services Legal Research Team will perform an extensive and thorough examination of a mortgage loan file to determine enforceability and what important remedies are available to the borrower.

Financial Relief Attorney Services will prepare a written report showing all regulatory violations identified, an explanation of the violations and an indication of each violation's materiality.

Borrower remedies can include the right to rescind (effectively cancel) the loan, block foreclosure, and result in fee and interest refunds or monetary damages. Material violations will compel a lender to modify a loan, even if the borrower cannot show hardship or is otherwise ineligible for a modification.

Required Documents For Loan Documents Audit

1. Final Settlement Statement (HUD-1 or 1A)
2. Estimate Closing Statement
3. Original Loan Application (FNMA 1003)
4. Final Typed Loan Application (FNMA 1003)
5. Good Faith Estimate (Broker)
6. Good Faith Estimate (Lender)
7. Initial Truth-In-Lending Disclosure
8. Final Truth-In-Lending Disclosure
9. Mortgage Loan Disclosure Statement (DRE Broker)
10. Itemization of Amount Financed
11. Promissory Note
12. Mortgage / Deed of Trust and Addendums
13. Prepayment Rider / Addendum
14. Mortgage Insurance Certificate
15. Section 32 Disclosure
16. Disclosure Concerning Charging Per Diem Interest
17. Variable Rate Mortgage Program Disclosure
18. Loan Servicing Disclosure Statement
19. Escrow Account Disclosure Statement
20. Private Mortgage Insurance Disclosure
21. First Payment Notice to Borrower
22. Rate Lock-In Agreement
23. Notice Right To Cancel (Primary Res. Refinance)
24. Preliminary Title Report
25. Servicing Transfer Notice
26. Privacy Disclosure
27. Appraisal Report
28. Any other Documents received at closing

Why "Financial Relief Attorney Services" Loan Document Audit?

Utilizing the results of the loan document audit, and the violations found, can allow any borrower regardless of the "Typical Qualifiers", the rights to Loan Modification and more. The discovery of factual information provided through a forensic loan document audit of the mortgage loan can be used as a negotiation tool. Should you choose to seek an attorney or loan modification company, they can use the Audit as a leveraging tool. Any litigation proceedings will be used to freeze the lender's current position.

These violations carry extremely stiff financial penalties for the lender, and can result in serious legal consequences to the lender, such as forcing the lender to refund all interest paid to date back to the borrower.

Loans with illegal terms or conditions are not ENFORCEABLE....

Foreclosures resulting from illegal loans are also not enforceable. The foreclosure process is stopped when litigation on a questionable loan begins. Mortgage payments are not required during the foreclosure or litigation process, although depositing the mortgage payment into a separate bank account is often considered a gesture of good will. Speak to an legal advisor for details.

When presented with the legal facts, lenders are apt to provide the most affordable solution when facing their legal options: modifying your loan, foreclosing your home, paying some high-priced attorneys to litigate, or risk stiff federal fines and penalties. And, furthermore, because of the economic conditions and the high cost of foreclosure to the lender, lenders will choose Loan Modification as the most financially sensible option.

Our loan documents auditing experts have the industry experience, in-depth subject matter expertise, compliance and underwriting knowledge, and judgment to help you obtain the mortgage relief you deserve!

ORDER your Loan Document Audit today

call (408) 573-1222