What Should a Proper Mortgage Examination Look For? |
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A Proper Loan Examination Will Uncover Those Violations Important to Create Leverage |
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A thorough loan examination should look for: 1) Violations of Federal Laws: The act of using your home as collateral in obtaining a mortgage is covered by numerous federal laws. These laws are in place to protect your rights when you use your home as collateral in a mortgage transaction. We will review your loan documents to determine if there are differences between the disclosure of information in your loan documents you received and the disclosure of information required by law. |
| 2) Constructive Fraud
Material facts include the terms of the loan, whether there is a prepayment penalty, or any other information (interest rates, finances charges, etc) which a reasonable borrower would want to know before accepting the loan.
Did the broker or loan officer or anyone working for the broker or loan officer fail to disclose any material facts to you?
3) Fraud and Negligent Misrepresentation Whether any representations, statements, or comments, written or oral made by the loan officer, broker, escrow or anyone else contradicted the terms of the documents. When a mortgage professional makes errors (which a reasonably diligent mortgage professional would not have made), he/she may have made a negligent misrepresentation. 4) Excessive Fees Are there any deceptive, abusive or predatory lending practices or an excessive prepayment penalty? Were there any excessive fees or improper charges made by the lender or loan broker? Is there a Net Tangible Benefit to the Borrower in the mortgage transaction? Was there a proper analysis to determine if the Borrower can afford the payments on the loan? Were the fees properly disclosed? 5) Breach of Contract The note and its attachments are a contract. The lender must follow all the terms of the contract such as the way the interest is calculated, and the penalties are assessed. Were there any terms in the contract which the lender failed to follow?
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Loan Examination in Depth
Part 1 of 2