National Audit Center

REGULATORY FORENSIC REVIEW SOLUTIONSUSING NATIONAL AUDIT CENTER MORTAGE REGULATORY VIOLATIONS : 

REGULATORY FORENSIC REVIEW SOLUTIONSUSING NATIONAL AUDIT CENTER MORTAGE REGULATORY VIOLATIONS NATIONAL AUDIT CENTER Fax 1 888 596 0101 (this is a secure fax line) Property Trust Group888 596 0101 ext 7042405 York Road Suite 202Baltimore, Maryland 21093

CONTENTS : 

CONTENTS About NATIONAL AUDIT CENTER (NAC) Consumer Credit Regulatory Compliance Using NATIONAL AUDIT CENTER to Identify Violations

ABOUT NATIONAL AUDIT CENTER : 

ABOUT NATIONAL AUDIT CENTER

NATIONAL AUDIT CENTER (NAC) is the leading provider of forensic loan audit solutions : 

NATIONAL AUDIT CENTER (NAC) is the leading provider of forensic loan audit solutions Since 2002 NAC has performed over 28 million compliance reviews for leading mortgage institutions NAC holds the patent on mortgage-related automated compliance engines NAC provides automated reviews of loans for compliance with over 335 federal, state and local consumer protection laws related to mortgage lending. NAC clients license the audit software or engage NAC to perform file reviews. Compliance rules are maintained by in-house mortgage attorneys and approved by nationally recognized outside counsel. NAC attorneys are responsible for rule formation, authoring and QA. Compliance rules are approved by outside, nationally-recognized mortgage law firms. Electronic loan data is submitted to NAC’s audit software and a response file with Pass/Fail/Warning results and analysis is returned in under 5 seconds.

Slide 5: 

CONSUMER CREDIT REGULATORY COMPLAINCE

How large is the market for loan workouts? : 

How large is the market for loan workouts? 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 Q3:2008 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 a 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. Mortgage Metrics Report (Commissioned by The Office of the Controller of the Currency (OCC) and the office of the Thrift Supervision (OTS) ) FirstAmerican Corelogic (Dec 2008)

How widespread is consumer protection regulatory risk? : 

How widespread is consumer protection regulatory risk? FDIC report reveals institutions do not comply with the most basic federal laws* 83% of the institutions examined were cited 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 in atleast one borrower class action FDIC Office of Inspector General Report, http://www.fdccig.gov/reports06/06-024.pdf Nielson, Jeff, “Subprime mortgages and Related Litigation-2007 Looking Back at What’s ahead” (February 2008), Navigant Consulting.

Identifying violations is critical to diligently representing troubled borrowers. : 

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 original 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 recover of attorneys’ fees.

Slide 10: 

USING NAC TO IDENTIFY VIOLATIONS

NAC provides its clients two primary services: : 

NAC provides its clients two primary services: Forensic Audit Software We provide you access to our patented Forensic Audit Software so that you can perform reviews on your own. Forensic Audits Our experts perform a forensic audit for you by reviewing a loan file and entering the information into our Forensic Audit Software.

NAC’s mortgage regulatory audit software includes the following features: : 

NAC’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 integration into internal systems. Powerful, flexible reporting viewable in HTML and PDF formats. Can be private-labeled to incorporate a client’s branding and design elements.

PLEASE CONTACT US FOR MORE INFORMATION : 

PLEASE CONTACT US FOR MORE INFORMATION