WHAT IS A SECURITIZATION AUDIT?
A Securitization Audit is the process of analyzing a mortgage loan transaction for the actual chain of conveyances/transfers of the mortgage loan over its lifetime (life of loan), tracking the loan to the alleged trust it was purportedly deposited into and checking the actual chain of conveyance against the mandated requirements of the Trust Agreements such as the Pooling and Servicing Agreement. It also includes gathering as much data about that loan in various databases such as EDGAR on the SEC’s site and the Bloomberg Terminal and it includes a full analysis of the many intermediaries involved in the loan/transaction over its lifetime. See illustration to left for a break down of the typical path and types of parties involved in a securitized mortgage loan transaction. As you might guess, with all the parties involved, the various transfers that occur and the overall sloppiness that the banks and servicers carried out these transactions with, we quite often find major irregularities to outright fraud and everything in between.
Our process includes a search of the Bloomberg Terminal Platform to render the most accurate and complete information about your mortgage loan as is absolutely possible. Not all mortgage loans that were securitized were registered in the Bloomberg Terminal. When Bloomberg is used to research your loan and we locate your loan in the terminal, you can actually see where your loan is today and how long it has been there; often times we can even see the latest trust distribution reports and we have documented instances where the loan is still listed as “current” as opposed to being classified as “in default.” There is no doubt for you or your attorney.
We also analyze a large amount of origination, servicing and other legal documents involved in your case. We conduct an investigation into the public record to elicit any/all recorded documents. We reconstruct a timeline of the entire life of the loan transaction. We conduct a comprehensive review of any/all related securitized trust documents such as the Pooling and Servicing Agreement, Mortgage Loan Purchase Agreement, Prospectus and Prospectus Supplement, Mortgage Loan Schedules and more. All of these documents and analyses are then put into a proprietary auditing process.
When the audit is done, our expert witness, Lane A. Houk, renders an Affidavit of Expert Opinion which can be filed directly into the court record.
PITFALLS… LOOK OUT FOR SCAMS
What separates a real Securitization Audit from Securitization Audit scams? That truly is a necessary question to ask because, unfortunately, there are a lot of scams in this area that are directly related to the “forensic audit scams” of 2008-2010. Virtually all of the same forensic audit scam companies started using the “securitization audit” term as a new offering as consumer advocates and consumers started catching on to their tricks.
Basically, the “securitization audit” offering is simply a new form of their scam. How can you really tell? Well, one easy way is to simply read a sample of what they allegedly produce. Yes, look for complete sentences, spelling and use your head… does this “report” really sound authentic, coming from an expert or is just a white-labeled version of the securitization encyclopedia?
However, the real way is to vet the actual person who is going to investigate, conduct the audit and render the report or affidavit. Here’s where the rubber meets the road so to speak… is THAT PERSON someone who is truly a recognized subject matter expert in the field of securitization, mortgage banking and finance. Has that person already been recognized as an expert? If so, in what jurisdictions? Will they provide you with actual attorney references from attorneys that they have worked with on real cases? If the answer to ANY OF THESE qualifications (not just all of them) is “no” then you might as well move one because that person and that company will not serve you well in any fashion in real-life litigation. Period. End of story – and you will have wasted precious time, money and resources for no realized benefit.
QUALIFIED AS AN EXPERT WITNESS
I have been qualified as a subject matter expert in multiple states and jurisdictions including Florida, Illinois, Michigan, Oregon, Washington, New Jersey, New York and California. My affidavits consistently survive intense scrutiny by opposing attorneys and the Florida Bar Association approved my course on Mortgage Backed Securitization, Truth In Lending Act and Foreclosure Defense Basics for 6 hours of Continuing Legal Education (CLE). I have testified in trials and have been deposed as an expert witness leading up to trial. I have multiple attorney references. You can access my CV here.
WHY AN EXPERIENCED EXPERT IS NECESSARY
Why is this level of expertise and accuracy important to you? Well, let’s use common sense first… if you are truly serious about defending foreclosure actions against you, you are going to have to litigate. No questions about it. Ask yourself how many people have obtained real workouts that benefit them without litigation. Research the answer if you don’t already know…
To litigate you need an attorney and a professional expert that can truly help you not only defend, but also take your case on the offensive track. You will likely need an expert that will actually qualify as one in court and you need findings in an affidavit format that will “WITHSTAND LEGAL SCRUTINY” by a judge and opposing counsel. That’s a definitive requirement.
I can’t tell you how many of these so-called securitization reports I’ve read that don’t even contain proper English or complete sentences. Really, I mean it. Secondly, the majority of them are nothing more than what we call “filler.” Documents that are regurgitated from copying and pasting content from the SEC’s site, EDGAR, the Bloomberg site, Wikipedia and so on. Folks, this is not expert witness or forensic material. It’s not worth $100.00 and you certainly don’t want to hang your house on it.
Here’s a direct quote from Matt Weidner, Esq. – “IF A LOAN AUDITOR OR REVIEWER CANNOT BE QUALIFIED AS AN “EXPERT” BY A JUDGE AN AUDIT HAS ZERO VALUE.”
Check out our member forums and comments in the Forensic Audit scams section of this site to find the companies that are being reported for being a scam or some variation of one. Even if the word “scam” isn’t being used directly, what’s important to look for in your due diligence are:
- Is there an actual, specific person that is putting their name to the work product?
- If not, we recommend moving on. If yes, who is that person and have they qualified as an expert before? Ask for proof.
- Ask for attorney recommendations. In the best scenario, you are already working with counsel but if not, you want an expert that has worked with attorneys before and you want to have some references.
- Read a recent sample of their work product. Does it make sense? Is it specific to the case at hand? Are there specific references to issues, violations or other red flags or does it sound more like reading from an encyclopedia?
- Are there copious amounts of spelling errors? This might sound stupid but honestly, I have read reports and affidavits from self-proclaimed “experts” who cannot even spell. And you want them being presented to the judge in your case as an “expert?”
- Do a Google search on the company and the specific person. Do you find any types of reports or reviews that should cause caution?
- Anyone can lie about anyone online. Just use good judgment, ask specific questions and follow your gut, it’s usually right.
Here’s a short-list of companies that our readers have reported as scams, or having produced worthless reports, or presenting work product (ie. report or affidavit) that was not effective in a court of law.
- TILA Solutions
- Certified Forensic Loan Auditors (CFLA)
- LivingLies Combo Title and Securitization Search
- Consumer Defense Programs – MSI Securitization Audits
- Legal Forensic Auditors (LFA)
- Mortgage Audits Online (MAO)
- Paladin Securitization Auditors (see also Ripoff Report complaint here)
- MFI Miami
Some of these companies have more complaints than others. We have not personally vetted any of these companies and we simply do not have time to do it. We get a lot of comments, emails and forum posts about all sorts of issues and topics. The companies below have at one time or another been the subject of a comment, email or forum post on this blog by a 3rd party visitor to this site. Do your own due diligence.
Still have questions or want to discuss an investigation of your case?
Call today at 1-800-985-4685 ext. 111 or fill out the confidential form to the right and submit your inquiry immediately!