What is Forensic Lender Discovery ℠ (FLD)?

FPG-USA Video: Forensic Lender Discovery (aka Securitization Audits), The Process, Benefits, Examples and Strategy. (10 mins.)

FLD is also known as a securitization loan audit. It examines the loan from the closing through the loan being sold into and included in a pool of mortgages sold to investors. Most residential loans issued from the year 2000 through 2007 were of this type. View Sample

FLD examines the loan for toxcity, flaws in a mortgage that undermine the ability to foreclose. The process then zeroes in on discovery and evaluation to assess hidden profits earned by the lender, some of which may entitle the borrower to substantial credits, and other issues of material significance (See What is Mortgage Toxicity link at left for more issues.)

The process of utilizing FLD reporting includes a credible third party mortgage analysis firm and availability of an expert to support the admission of findings into evidence, as opposed to allegations. As evidence, the burden of proof is put on the lender and the discovery reponse through court rules of civil procedure is destined to go back to the mortgage analysis firm for evalutaion, reporting and additional inquiry as required. This is an onerous process from the lender's standpoint. Part of the cost of FPG-USA services reflect this representation benefit and commitment.

FPG-USA has adapted a stepped pricing and service philosophy to save clients money. Only order what you need as you need it. Why pay more for services you may not need if settlement is acheived in an earlier Stage?

FLD is a Stepped Process

1. Pre-Assessment: When you don't know the true real owner of the mortgage. For example, the servicer is foreclosing, or a trust you have no verification is the real owner party in interest.

2. Stage One: Assessment and Report: When you know positively who the real true owner of the mortgage is. For example, the ABC Trust Series 2006-AR1.

3. Custom Reports: Anything special. For example: Admissions, Interrogatories, First Requests, Document Discovery. Also: Construction to Perms can fall into this area.

4. Stage Two: Review and Report. Very unlikely to reach this stage without a settlement. If the foreclosing party decides to fight the Stage One with responses to discovery admissions, interrogatories and documents. This is in response to their response.

5. Stage Three: Full Evidentiary Findings and Reporting that falls outside of Stage Two. This is a rare event in residential but it does occur in those special cases.