We specialize in a variety of investigative services to assist mortgage originators, insurers, investors, issuers, and servicers, looking to mitigate risk associated with a loan or making a purchasing decision.
Frasco employs a professional and experienced staff with varying backgrounds in the mortgage industry. Our reports are fully customizable and tailored to provide you with the specific information you need to make informed decisions.
Forensic & Fraud Reviews:
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.
Due Diligence & Quality Control Audits:
Our Mortgage Due Diligence reviews are handled by experienced industry professionals who can examine mortgage loans to ensure they meet your requirements. Frasco offers a Quality Control Program that is precise, quick and cost-effective making the decision to outsource a simple choice. We specialize in assessing the quality of loans to show whether or not they comply with program requirements, federal and state regulations as well as internal guidelines, policies and procedures.
Frasco’s Quality Control Audits include any or all of the following:
- Sample Selection
- Forensic Fraud Review
- Valuation Review
- Data Integrity Check
- Re-verification of Critical Documents
- Policies and Procedures Review
- Fully Customizable Reporting
Loss Mitigation:
Audit services that supplement any Loan Servicing Department revealing misrepresentations, relationships, and information that is undisclosed during the Loss Mitigation process. We re-verify document accuracy in short sales, loan modifications, deeds-in-lieu, and foreclosures.
Frasco allows our clients the ability to select services specific to each audit. The following are some of the services we offer to evaluate Loss Mitigation fraud:
- Re-verify the income and assets represented in the submission
- Evaluate the value of the subject property
- Confirm the hardship reason(s)
- Evaluate a new credit report
- Uncover any non-arm’s length relationships between parties
- Research and evaluate the Realtor and/or any third-party involved in the transaction
- Interview with the borrower/seller, new buyers, Realtors, or third-parties
- Evaluate the original loan package in conjunction with the current Loss Mitigation submission to determine potential non-disclosed assets, sources of income, relationships, etc.
- Search social media sites to attempt to uncover any undisclosed information
- Confirm the borrower’s occupancy of the subject property
Underwriting Reviews:
Includes analysis of any or all the following aspects of the origination file:
- Terms of the transaction
- Employment, income and asset documentation
- Credit report to ensure all liabilities were considered
- Transaction for any non-arm’s length relationships
- Represented occupancy of the transaction
- Purchase agreement and HUD-1 settlement statement
- Appraisal report
- True Debt to Income and Loan to Value ratios
- If underwriting conditions were met/cleared correctly
- Exception process (if applicable)
- If loans meet lender guidelines
- Verification of employment, income, and/or assets at the time of the transaction
Verification Services:
Our verification services provide you with the ability to validate information about a borrower regarding their identity, employment, income, assets, public records and properties they possess. We can re-verify information from closed loans or as part of a pre-funding Quality Control process.
Some of the individual verifications we offer include:
- Verification of Employment
- Verification of Deposit
- Social Security Number
- Bankruptcy and Federal Court Filings
- Property Records
- Business Search
- 4506-T Processing
Valuation Services:
Our certified real estate appraisers who are well versed on the requirements mandated by the Uniform Standard Professional Appraisal Practice (USPAP) and provide detailed valuation reviews prior to and/or post closing, which can confirm the validity of the real estate appraisal, as well as support or refute the appraiser’s value conclusion.
Our valuation team can provide the following services:
- Automated Valuation Model
- Desk Appraisal/Review
- Field Appraisal/Review