Mortgage Auditing

It is all about you!

Mortgage auditing is an extremely specialized service, because many adjustable rate mortgages, commonly called ARM's, contain errors due to several different variables.  It is imperative to have your mortgage audited regularly, usually about every three to five years.  This is to assure proper allocation of the payment you make to your lender.  When an error is discovered, the homeowner may be entitled to a refund.

Having your mortgage audited does not implicate your lender as being fraudulent or intentionally making errors in servicing your loan.  Loan parameters and variables that constitute the loan contract are governed by interest rates and index margins that change according to government treasury bills, investments, and other similar monetary instruments that are traded in the daily currency/stock exchange.

Why Does this mean I may have errors?

The most accepted common reason that there are errors in adjustable rate mortgages is because there is a constant variable in the interest rate, the index guides, and  margins that are used to compute changes in your interest data. Another common explanation is that many of the indexes have similar sounding names yet have different trading values. The date that the current rate is issued and then released to the banking industry, also is subject to variables. Many times, those who are given the task of reviewing your rate and computing the changes that apply to your loan, are often new to using the guidlines or simply perform inaccurate  data entry,  therefore apply the wrong changes to your loan.

Why is Mortgage Auditing neccessary?

While it is true that not every adjustable rate mortgage contains errors, statistically 48% to 65% do. Additionally, although rare, some fixed rate mortgages, and many home equity loans may also contain discrepancies.  An audit of your mortgage or loan provides the security of knowing that your lender has adequately managed your loan correctly.