National Loan Auditors recently was asked to write a featured article for Scotsman Guide. Scotsman Guide is the leading publication for mortgage originators. National Loan Auditors was asked to write an article that explains what a forensic loan audit is and how it can help mortgage originators improve their business. The article was published in the March issue of the publication and was the featured article. Here is an excerpt from the article.

CSI: Mortgage Industry

The idea of a forensic loan audit is not an exceptionally new one. Loan audits have been around in one form or another since the beginning of federally regulated loans. However, it was not until recently that the audit evolved into what can now be called a forensic loan audit. Even more recently these forensic loan audits began to take on a new prominent role due to the current mortgage meltdown. The forensic loan audit is a powerful tool to help clean up the mess left behind from the mortgage meltdown, as well as to safeguard against a future disaster.

The Forensic Loan Audit and the Broker

As the use of forensic loan audits become more widespread, brokers need to be knowledgeable about what a forensic loan audit is and how it can be used.
Forensic loan audits will change how the lending business operates. The system will be more tightly regulated and focused more on quality loans and less on quantity. Lenders will be looking for brokers who produce loans that perform. Forensic loan audits will make it easier for lenders to highlight patterns in loans connected to a single broker. Also, every loan a broker brings in will be more closely scrutinized to insure that all compliance regulations were met. In the near future, lenders may perform an “exit audit” on each loan to insure that the file is in order and within compliance. These exit audits will prevent errors from slipping through the cracks.

Look for the March Issue of Scotsman Guide to read the full article.