Slide 1: REGULATORY FORENSIC REVIEW SOLUTIONS
USING THE LOAN FORENSIC ATTORNEY TO IDENTIFY MORTGAGE REGULATORY VIOLATIONS ELITE LOAN MODIFICATIONS
866-960-2007
Slide 2: About Loan Forensic Attorney
Consumer Credit Regulatory Compliance
Using the Loan Forensic Attorney to Identify Violations
Slide 3: About Loan Forensic Attorney
Slide 4: Loan Forensic Attorney is the leading provider of Forensic Loan Audit Solutions.
Since 2004 LFA has performed countless compliance reviews for leading mortgage institutions.
LFA provides automated reviews of loans for compliance with over 335 Federal, State, and local consumer protection laws related to mortgage lending.
Compliance rules are maintained by in-house attorneys and approved by nationally recognized outside counsel.
Electronic loan data is submitted to LFA’s audit software and a response file with Pass/Fail/Warning results and analysis is returned in under 5 seconds.
CONSUMER CREDIT REGULATORY COMPLIANCE : CONSUMER CREDIT REGULATORY COMPLIANCE
Slide 6: How Large is the market for Loan work outs?
Leading lenders completed nearly 290,000 loan modifications in Q3 2008
OCC/OTS reviewed combined servicing portfolios of institutions representing more than 60% of all mortgages outstanding.*
16% increase over Q2 2008
suggests an annualized run-rate of nearly 2.0 million loan modifications per year
8.3 Million U.S mortgages or 20% of all mortgaged properties were in negative equity position
There are an additional 2.2 million mortgages within 5% of being in a negative equity position
Negative equity and near negative equity mortgages combined account for 10.5 million potential loan modifications.
Slide 7: How wide spread is the consumer protection regulatory risk?
FDIC report reveals institutions do not comply with the most basic federal laws*
83% of the institutions examined were sited for “significant” compliance violations
43% of those institutions were “repeat” offenders
85% of those repeat offenders were highly rated by the FDIC for their in-place compliance processes
Subprime related cases filed exceeds the total handled by the RTC over the multi year S&L period
43% are borrower class actions related to consumer protection laws
Each of the top Subprime lenders for 2006 is named at least one borrower class action
Slide 8: Public data is consistent with the findings of our Borrowers, attorneys and loan modification clients 42% FAIL
39% PASS
19% WARNING
Slide 9: Identifying violations is critical to diligently representing troubled borrowers.
Consumer protection violations subject lenders, investors and servicers to civil and criminal fines, penalties and damages
In many instances, any holder in due course of a mortgage loan (“assignees”) can be liable for violations committed by the originating lender or broker
Servicers can be liable for failing to respond to qualified borrower requests
Borrower remedies can include:
Rescission
Defense to foreclosure
Refund of interest and/or fees
Civil Damages
TILA, RESPA and other Federal and state laws provide for recovery of attorneys’ fees
Slide 10: USING LFA TO IDENTIFY VIOLATIONS
Slide 11: LFA provides its clients two primary services:
Forensic Audit Review
We provide you an expert Manual Forensic review of your loan documents
Forensic Audit Report
After our experts perform the manual review and have entered the information into our Patented Forensic Software, we provide you a fully written report of the findings
Slide 12: LFA’s mortgage regulatory audit software includes the following features:
335 Federal, state & local mortgage related laws and regulations in under five (5) seconds
Decisioning rules are maintained by in-house consumer attorneys audited by nationally recognized outside counsel
Regular updates and enhancements per changes to law
Accessible via web-based user interface or intergration into internal systems
Powerful, flexible reporting veiwable in HTML and PDF formats
Slide 13: 1.
You send us your loan file….
(Loan Documents) 2.
…. We Perform the Forensic Review…. 3.
…. We Produce a detailed report identifying regulatory violations
Slide 14: PLEASE CONTACT US FOR MORE INFORMATION
866-960-2007
FORENSICS@ELITELOANMODIFICATIONS.COM