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

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Is a Forensic Mortgage Audit Irish Money Well
Spent or Just an American Myth?
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(No Transcript)
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• 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.

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• 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.

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• 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 the loan 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.

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• 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.

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• 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.

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• 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.

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