Countless audits have revealed employment, income, asset/down payment, and occupancy misrepresentations, along with straw buyer and identity theft schemes. Lending institutions and mortgage insurance companies are unsuspectingly approving and insuring mortgage loans based on misrepresentation of information.
Our primary focus is to determine if misrepresentations exist, what false information was presented and by whom, and to prevent losses due to fraud.
Our mortgage audits typically include, but are not limited to the following:
- Borrower Interviews: Obtain borrower interviews (or interviews of any relevant party to the transaction) and supporting documentation including signed statements, copies of original documents (not found in the origination loan file) and newly executed Forms 4506-T to support misrepresentations made on the original application.
- Employment / Income Re-Verifications: Secure information of the borrower’s true and accurate employment and income history.
- Re-Verifications of Deposit and Source of Funds: Determine the validity of the borrower’s reported assets and source of down payment.
- Occupancy Verifications: Secure information and evidence supporting whether the borrower intended to occupy as a primary residence or if a misrepresentation was made in their intention to occupy. This includes determining where the borrower resided prior to, during and after origination.
- Undisclosed Debt / Mortgages: Determine and secure evidence revealing any mortgages and/or debts that may have been undisclosed at the time of origination.
- Re-Verification of Other Origination Documents: Re-verify the validity of documents such as Verification of Rent, Verification of Mortgage, and others found in the loan file.
- Straw Buyers: Determine if the transaction was not for the borrower, but rather a third-party that was not identified in the loan application. Attempts to interview both the borrower and true occupants are secured.
- Identity Theft: Determine cases where the borrower claims identity theft and verify the validity of the claim. If warranted, assist the victim in the proper reporting of the claim and investigate the identity of the perpetrator.