Forensic Loan Audits & the Loan Modification Process, Part II

Stephen Hoshida, Manager of National Loan Auditors' Online Legal Portal, continues his discussion of the loan modification process in Part II of this interview series:

4. What factors are taken into consideration by the mortgage lender when determining whether or not a borrower qualifies for a loan?
• There are a number of factors that the lender takes into account when considering a loan modification. The primary concern for lenders may be the financial status of the homeowners. The lender needs to know what the financial situation of the homeowners is to know how they need to modify the loan. The lender will consider the violations that are found in the homeowner’s forensic loan audit. There are also external considerations on the lender such as federal programs, economic climate, and the will of the investors. All of these will be incorporated into the lenders decision on how to modify a loan.

5. What challenges can homeowners expect to face during the loan modification process?
• The hardest part of a loan modification is the waiting period. The process may take some time and loan modification departments of the lenders are being over worked. If the homeowner is already experiencing financial hardship, the time it takes to negotiate a loan modification will compound the problem. Another challenge a homeowner may experience is in dealing with the lender. Lending companies have many different departments, each with a different agenda, and often time these departments are not informed as to what the other branches are doing. Also, with the unstable financial climate, banks are absorbing other banks and restructuring their own departments which results in a continual change in internal procedure.

6. How would a loan audit from National Loan Auditors benefit an attorney or other mortgage industry professional?
• Forensic loan audits from NLA can specifically benefit attorneys and other mortgage professionals by giving them a quick legally sound distilment of a borrower’s case that they can use to plan their strategy on how to litigate the case or to approach a loan modification.

7. What sets National Loan Auditors apart from other forensic loan audit providers?
• National Loan Auditors provides the best forensic loan audit on the market. NLA’s forensic loan audit contains over 125 checks to insure that the lender adhered to all the statutory regulations when issuing a loan. The Forensic Loan Audit Pro is the only “legal-centric” audit. This means that the audit not only outlines the lender violations that occurred in the loan, but also provides supporting statute an case law to explain why a violation occurred and how the violation can be used in a court of law.

8. How long does it take to complete a forensic loan audit?
• A forensic loan audit only takes about 1 day to actually complete the audit. However with the demand for audits right now it takes about 5 days for a borrower to receive their audit.

9. With new legislation designed to support and protect homeowners, how will government efforts, like the Make Homes Affordable program, affect the loan modification process?
• The MHA Program has been a huge step in the right direction to address the needs of the homeowners. MHA streamlines the process for homeowners to workout a loan modification. That being said they are still not a cure all. MHA only address a fraction of the problem loans out there because it only applies to Frannie and Freddie loan. There are still millions of homeowners out there who will not qualify through this plan. Lenders are doing what they can to come up with their own loan modification plans that address the remaining loan but they are swamped and understaffed so this process is slow.

10. Are National Loan Auditors’ forensic loan audits available only in California?
• No, NLA provides forensic loan audits nationwide. We are even developing international audits for other countries.

11. What changes occur within the mortgage after a loan modification?
• The changes to the mortgage are a modification of the terms of the agreement, hence the name loan modification. The original loan is still in effect and all the associated terms still stand, but the specific terms negotiated in the modification process are changed to reflect the new agreement. At it’s core a loan modification is a simple contract change.

12. Who should homeowners contact to receive help and more information?
• National Loan Auditors
• 877-NLA-6676
• 1820 Bonanza St. Suite 201
• Walnut Creek, CA 94596
• www.NLAudit.com
• 
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• eModify Inc. a Legal Advocacy Group
• 877-4-EMODIFY
• 1820 Bonanza St. Suite 201
• Walnut Creek, CA 94596
• www.eModify.net

About National Loan Auditors:

National Loan Auditors is the Nation’s leading and most reputable provider of comprehensive forensic loan audit reports, offering superior services with unsurpassed results. Founded by August Blass, a financial services veteran with more than 20 years of executive experience in the field, the Walnut Creek, CA-based company provides quality control pre-close and post-close auditing, risk assessment consulting and fraud prevention services to the mortgage and banking industries.

Stephen Hoshida is a graduate of California State University Chico, with a Bachelor of Arts in Political Science and has completed his Jurist Doctorate at Golden Gate University of San Francisco. While attending law school, Stephen focused primarily on criminal law, working in the San Francisco County and Butte County District Attorney’s Offices.

Source: National Loan Auditors, Inc.
http://www.NLAudit.com