Is a Forensic Mortgage Audit Irish Money Well Spent or Just an American Myth?

1. Is a Forensic Mortgage Audit Irish Money Well Spent or Just an American Myth?

3. Forensic loan or mortgage audits came to prominence primarily in The US when the financial crash began in 2007. What started as a crisis in the subprime mortgage market developed into a full-blown international banking failure with the collapse of the investment bank Lehman Brothers on September 15, 2008. This was followed by the Irish financial crisis marked by the collapse and subsequent state takeover of Anglo Irish Bank, Irish Nationwide. Most of the indigenous Irish financial institutions faced almost imminent collapse due to insolvency. In response, the Irish government instigated a €64 billion bank bailout.

4. In the aftermath of the American financial collapse the subprime lending market came into focus in particular the endemic practice of predatory lending committed by banks and brokers throughout the USA which was a catalyst to the crash. As a result Lawyers and advisers specialising in forensic Loan securitization audits uncovering infractions and violations and overcharging committed by the lenders sprouted up overnight. They advised that the audit report could be used to avoid repossession, accelerate the loan repayment term, reduce the loan principal, or even cancel the loan.

5. A securitization audit is an audit carried out in most cases by a third party researcher who scour through various publicly available resources to find proof that the loan was  securitized. In other words theloan was pooled with other loans and sold to investors. Because of the amount of subprime lending and ensuing misselling that occurred the hundreds of thousands that found themselves in financial difficulty were prime targets for these Loan audit advisors.

6. This resulted in widespread abuse of these forensic audit services offered by lawyers and brokers promising cancellations in repossessions and debt write off based on the securitization process done by the bank. Apart from the state of Florida where the law differed theses advisors delivered in a very small number of cases. It got to the point that the US Financial consumer protection body FTA campaigned against a large amount of unscrupulous advisers in this sector.

7. In Ireland there has been a lot of social media coverage of the securitization process and how it can be used to delay repossessions and even cancel debt. This seems to be mostly based on the misunderstanding that the cause of the Irish negative equity situation is comparable to the US subprime mortgage misselling situation. Yes there are thousands of genuine misfortunate Irish people that are facing repossessions and will understandably grasp at any glimmer of hope but the jury is out on whether the securitization argument is the answer.

8. However with an industry accepted figure of 75% of Irish and UK bank accounts subject to overcharging a mortgage audit uncovering overcharging makes good financial sense. 40,000 Irish tracker mortgage customers are a good endorsement for this.

9. Contact us- Loan Analysis Solutions Locations : Naas, Kildare, Ireland Email : contact@loananalysissolutions.ie Website : www.loananalysissolutions.ie