the Foreclosure Prevention Act, Judges will be given the authority to provide loan modifications as a remedy. The ramifications of this cannot be understated. In many courts this will mean that a Judge, a person who knows a lot about the law but very little about lending, will have the virtually unlimited power to modify loans. If the Foreclosure Prevention Act becomes a reality and Judges are put into the position of loan modifier, a procedure needs to be in place to give the Judges guidance on how and when a loan should be modified.
Granting a loan modification as a remedy will most likely be treated as an equitable remedy but the courts. This will give the Judges some guidance as to how and when modification should be granted. Equitable remedies address fairness in a situation and seek to make both parties equal in the eye of the court. While this has worked in the past for judges its application is fairly limited. In the specific case of loan modifications the guidelines set out by equitable remedies are woefully inadequate.
What really needs to be done, and what National Loan Auditors can provide is a complete forensic loan audit of each loan related to a case brought before any judge. The forensic loan audit will find any errors in the origination of the loan and their severity. This will give judges a blueprint for what went wrong in the loan process. In knowing what went wrong with a loan, it will be easy for a judge to determine how a loan needs to be modified in order to make the loan fair and in compliance with the standards or the lending industry.
National Loan Auditors will also provide a standardized forensic loan audit that judges will become familiar with over time. All audits are not equal and some audits are confusing and filled with fluff. Using one company and one audit will save the Judges time which helps the state save money. National Loan Auditors has all the components needed for the courts to assist them in integrating the Foreclosure Prevention Act; quality, National Loan Auditors is the industry leader for forensic loan audits, reliability, National Loan Auditors is an established company, and volume, National Loan Auditors has the capacity to handle the needs of the courts.
