- ADP specifically examines in great detail:
• ADP ensures that the loan was properly underwritten and sound judgment used. 
ADP reviews credit documents and calculations to ensure the borrowers had the ability and willingness to repay the debt. 
• ADPreviews appraisals to ensure that the subject property represented adequate collateral for the mortgage. 
• ADP conducts “red flag” underwriting reviews are on all loans to identify and locate any inconsistencies that may be indicative of lender fraud or misrepresentation. 
ADP reviews closing documentation to ensure that they conform to stated guidelines. 
ADP reviews disclosure documents to ensure they were compliant. 
ADP evaluates compliance to state and federal Anti-Predatory Lending (HOEPA Section 32). 
• ADP utilizes the latest technological resources along with a staff of experienced underwriters to provide a thorough audit of the loan file. Each file is dealt with the highest level of confidentiality and reviews are completed in an expeditious manner.
A forensic loan audit looks at loan documents for miscalculations, and it requires performing thorough investigations to determine if the loan terms are accurate, truthful and meet requirements of the applicable federal statutes. These regulations include the Truth in Lending Act, the Home Ownership and Equity Protection Act, and the Real Estate Settlement Procedures Act.
The federal statutes determine which federal requirements need to be met by the lender in issuing the loan. These include mandatory disclosures, how and when such disclosures are made, limits on annual percentage rate, and a number of other requirements.
Forensic loan audits also should analyze a loan to determine if it meets state and local requirements. Every state has some form of lending regulation. Some states choose to implement statutes that have language almost identical to that of the federal statutes, while others go well beyond the federal statutes and put even more restrictions on the lending industry.
States also may create their own causes of action for additional requirements. For example, California requires that a consumer who negotiated any sort of contract in a language other than English be provided with a translated copy of the contract.
In California, Nevada and Michigan, the lender must be able to prove that it had a structured internal policy to ensure the accuracy of the stated income on all stated-income loans. According to these states’ laws, this policy must be accurate and reliable.
When a property is upside down and the homeowner is facing foreclosure, the homeowner has more leverage than they may realize against their lender. Our service can force that leverage upon that lender. In doing so, you can be successful in wiping out large portions of principle. 
Typically 50-80%!
Interest Rate / Payment Rate Reduction
With the overwhelming increase of interest rates resetting on home loans and the devastating effect of this economy, many homeowners are faced with mortgage payments they can no longer afford. It is better to lower the homeowner's payment by lowering the interest rate or payment rate by creating a payment plan the borrower can afford, than to take the home with a foreclosure sale and lose money on the re-sale. Keep in mind lenders lose money on bank owned properties as it will sell for less than market value, and they must pay a commission to a Realtor; and closing cost plus the cost of holding the property while they wait for a sale in a market that is depreciating.
At its heart, a forensic loan audit is a process that breaks down and analyzes a set of loan documents to determine if all parties completed proper procedures and complied with regulations during the origination of the loan.
Today, the forensic loan audit represents a powerful tool to help clean up the mess left behind by the mortgage meltdown, as well as to safeguard against a future disaster. Here’s how.
With courts recently gaining power to demand loan modifications in some instances, forensic loan audits likely will change how the lending business operates. The system will be more tightly regulated and focused on loan quality, rather than loan quantity. Lenders will seek brokers who consistently produce loans that perform.
Lenders will negotiate a settlement where most all delinquent payment are either wiped out or put to the back of the loan. In most cases the rate and payment will be reduced permanently.
In turn, forensic loan audits could make it easier for lenders to highlight lending patterns connected to a single broker. They also could help brokers improve their own work and build a reputation based on quality.
Soon, lenders may perform an exit audit on each loan to ensure that the file is in order. Every loan a broker brings in also is likely to face closer scrutiny to ensure that all compliance regulations were met. These exit audits could prevent errors from slipping through the cracks.

As the use of forensic loan audits becomes more widespread, mortgage brokers must know what a forensic loan audit is and how it can be used.