Complaint Review: Securitization Audit Pros - Los Angeles Internet

Securitization Audit Pros are a scam, and their services are useless as they target distressed homeowners, this is the new foreclosure rescue scam which promises to help distressed homeowners keep their homes through the use of a "securitization audit." “The only problem, according to investigative firm Mortgage Fraud Examiners: These "hucksters" are charging fees for information that's free to anyone for the asking, and knowing who owns the note won’t save anyone’s home.”

"These questionable outfits target desperate families, giving them the impression they can make their mortgages disappear if they just pay for a securitization audit," said Mortgage Fraud Examiners founder Storm Bradford. "The idea is that the securitization audit will reveal the true owner of the mortgage, and that information can show the court that the foreclosing lender has no claim to the property.

In addition to the financial hit, securitization audits usually deal homeowners another blow: They're not typically even admissible in a court of law. Attorney Gregory Bryl, who practices in Florida and Virginia, and employs the services of Mortgage Fraud Examiners explained: “Most ‘securitization audits’ that I have reviewed are inadmissible in a court of law; they contain a mere opinion of a layman without personal knowledge as to what happened with a particular mortgage note after closing. Attorney Thomas K. Plofchan, Jr., who practices in Sterling, VA, another Mortgage Fraud Examiners client, contends that “the only proven method for securing evidence critical to a homeowner's claim against the lender is a thorough examination of the mortgage contract to identify errors, breaches, omissions, fraud, statutory violations, and/or predatory/unfair lending practices.” In addition to Attorneys Bryl and Plofchan, many others have become increasingly outspoken in their criticism of this scam: http://www.nakedcapitalism.com/2011/05/new-homeowner-scam-mortgage-securitization-audits.html and http://mattweidnerlaw.com/blog/?s=securitization+audits&search=Search.

"Every homeowner facing foreclosure has fantasized about getting his home free and clear because his lender screwed up," said Bradford. " It's only natural, but the fact is the only homeowners getting a home free and clear, and/or been granted other compensation have succeeded after a thorough analysis of their mortgage transactions revealing tortious conduct or other weaknesses in the contracts they could use to attack their loans. http://wvrecord.com/news/s-3962-state-supreme-court/261610-quicken-loans-ordered-to-pay-3-5m-in-mortgage-case-appeals

The California Department of Real Estate (“DRE” or “Department”) previously issued a consumer alert and fraud warning on loan modification and foreclosure rescue scams in California.  That alert was followed by warnings and alerts regarding forensic loan audit fraud, scams in connection with short sale transactions, false and misleading designations and claims of special expertise, certifications and credentials in connection with home loan relief services, and other real estate and home loan relief scams.

The Department continues to administratively prosecute those who engage in such fraud and to work in collaboration with the California State Bar, the Federal Trade Commission, and federal, State and local criminal law enforcement authorities to bring such frauds to justice.

On October 11, 2009, Senate Bill 94 was signed into law in California, and it became effective that day.  It prohibited any person, including real estate licensees and attorneys, from charging, claiming, demanding, collecting or receiving an upfront fee from a homeowner borrower in connection with a promise to modify the borrower’s residential loan or some other form of mortgage loan forbearance.

Senate Bill 94’s prohibitions seem to have significantly impacted the rampant fraud that was occurring and escalating with respect  to the payment of upfront fees for loan modification work.

Also, forensic loan auditors must now register with the California Department of Justice and cannot accept payments in advance for their services under California law once a Notice of Default has been recorded.  There are certain exceptions for lawyers and real estate brokers.

On January 31, 2011, an important and broad advance fee ban issued by the Federal Trade Commission became effective and outlaws providers of mortgage assistance relief services from requesting or collecting advance fees from a homeowner.

Discussions about Senate Bill 94, the Federal advance  fee ban, and the Consumer Alerts of the DRE, are available on the DRE’s website at www.dre.ca.gov.