Forensic Mortgage Auditors Expands Audit Focus to Include "Option Arms" and Reverse Mortgages. Serving Borrowers and Law Firms Nationwide

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Forensic Mortgage Auditors, an expert mortgage audit firm serving home owners nationwide, expands its audit focus to include "Option Arms" and Reverse Mortgages. With one in four US borrowers underwater, this company can provide the compliance review needed to determine if a residential mortgage was originated in compliance with the applicable federal laws. Improperly originated mortgages may be subject to modification or recission.

The proportion of U.S. homeowners who owe more on their mortgages than the properties are worth has swelled to about 23%, threatening prospects for a sustained housing recovery. Nearly 10.7 million households had negative equity in their homes in the third quarter, according to First American CoreLogic, a real-estate information company based in Santa Ana, Calif.

More than 40% of borrowers who took out a mortgage in 2006 -- when home prices peaked -- are under water. Prices have dropped so much in some parts of the U.S. that some borrowers who took out loans more than five years ago owe more than their home's value.

These so-called underwater mortgages pose a roadblock to a housing recovery because the properties are more likely to fall into bank foreclosure and get dumped into an already saturated market. Economists from J.P. Morgan Chase & Co. said Monday they didn't expect U.S. home prices to hit bottom until early 2011, citing the prospect of oversupply.

Home prices have fallen so far that 5.3 million U.S. households are tied to mortgages that are at least 20% higher than their home's value, the First American report said. More than 520,000 of these borrowers have received a notice of default, according to First American.

Forensic Mortgage Auditors ("FMA") is a business unit of Expert Witness Services, LLC. FMA through its staff of experienced mortgage experts and its data evaluation department, can perform a forensic fact pattern analysis on a mortgage transaction, moving from the initial application interview all the way through to the closing of the transaction. At each step of the process, FMA evaluates the transaction for full complaince with RESPA, TILA, FCRA, HOEPA, and other agency rules and regulations. Each instance of improper practice is identified and FMA will cite to the applicable regulation making legal assessment easier for the borrower's attorney.

Report turn-around times are quick, and the reports are generally considered to be litigation ready. FMA's work product can be combined with FRE Article VII qualified expert witness services available from FMA's parent company.

FMA provides services to Home Owners and Law Firms. If you are an attorney, or if you or someone you know is subject to a subprime mortgage, "Option Arm" , or a Reverse Mortgage where questions of suitability or compliance exist, contact FMA at (877) 330-9111. Or visit their web site at

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