Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

CFLA Bloomberg property Securitization Analysis are picking up Steam & Credibility in the International Markets

moneyweb.co.za | December 2, 2015

By Ciaran Ryan

Securitization audits present a new problem for banks attempting to repossess the homes of defaulting borrowers.

A newly formed company called Virtual Velocity has completed four audits so far and in each case the loans were apparently found to have been transferred to new owners in Taiwan and Thailand. Three of the loans were issued by Standard Bank, the fourth by FNB. In all cases, the banks have denied in court papers that the loans had been securitised. Audits are currently underway into loans issued by all major SA banks.

Securitization is becoming a huge issue internationally, since a bank that securitises a loan no longer owns it, therefore has no legal right to pursue the borrower.

Virtual Velocity says it is currently involved in upwards of 50 more audits requested by borrowers in SA. The company is also fielding calls from Sweden, Australia and elsewhere. It is also launching a crowd funding campaign to increase the sample size of the audit. “Several thousand South Africans, most of them facing foreclosure, have tried to argue securitization in the courts to no avail. This is why we decided to launch securitization audits in SA. Now we can provide a level of proof that was not possible before,” according to a statement by Virtual Velocity.

“Securitization audits are common the US and helped buttress the case against several banks recently convicted of fraud and forced to pay billions of dollars in fines. We are building a trail of evidence in SA that we will then hand over to the prosecuting authorities, or we may just bring legal action against the banks ourselves.”

The audit involves detailed searches of several databases internationally that allows it to track the movement of securitised loans. What the company is uncovering appears to blow holes in the banks’ claims that these loans have not been securitised. In four out of four cases, the loans appear to have travelled thousands of miles to new destinations in Asia.

Until now, it has been virtually impossible to prove securitization in SA courts. This is because the respondent alleging securitization is expected to provide proof, which has been all but impossible in the absence of evidence. That is now changing as audits – which in theory carry the same weight as a financial opinion by a company’s auditor – cast doubt on banks’ assertions regarding their ownership of these loans. It is reckoned that upwards of 10 000 homes are repossessed in SA each. They are then sold at auction, usually for a fraction of their market value.

Four years ago the New Economic Rights Alliance launched a campaign to educate the public about the shadowy banking practice known as loan securitization. This involves packaging mortgage, vehicle and other loans into tradable securities and on-selling them to investors.

The first audit to be completed involved a loan taken out by Eastern Cape ostrich farmer Ash Davenport, who took out an overdraft facility of R3 million with Standard Bank several years ago. He put his farm up as security for the loan. When he asked for additional loan facilities, the bank froze his accounts and called up his loan. It took judgment against him and attempted to sell his farm for R4 million – when Davenport says it is worth R60 million. He managed to forestall the auction sale of his farm and then undertook a securitization audit. The US-based auditor, Michael Carrigan – who has testified in close to 3 000 similar cases in the US – found Davenport’s loan had probably ended up in Taiwan. Standard Bank in its court papers denied it had securitised Davenport’s loan and has dismissed the audits as speculative.

Virtual Velocity says he has received a large number of queries from Absa clients whose loan documents appear to have been burnt in a fire at the Docufile storage facility in Cape Town in 2009. What has aroused the suspicions of many home owners is the banks’ reluctance to provide original “wet ink” documents they are purported to have signed. “Absa’s documents appear to be the most flammable,” says a spokesperson for Virtual Velocity, but other banks also have some interesting excuses for withholding documents from clients.

“Several of the clients who have contacted us report that they were not properly served with Section 129 letters as required under the National Credit Act, and many others were served summons to 10 year old addresses. Abusive late night call behaviour, SMS spam, unsolicited mail and generally abusive interaction by agents is voiced by many clients. There are also many complaints about procedural anomalies in courts.”

 

Back to December 2015 Archive

 

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer

Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:



 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package

 

ALB Law Firm

 

Advocate Legal

 

The True News Network

 

Rubenstein Business Law

 

Atighechi Law Group

 

Scunziano & Associates

 

Get Certified to Perform Mortgage Securitization Audits

 

CFLA Training Academy

 

Expert Witness Services

 

Cutting Edge Expert Securitization Reports

 

CFLA Credit Cards

 

Breaking News

 

Letters to the Editor

 

CFLA Weekly Newsletters

 

Code of Ethics

 

Testimonials

 

Instructional Videos

 

Job Opportunities

 

License Opportunities

 

MARS Rule

 

Product Samples

 

Resource Links

 

Servicer Information

 

Foreclosure Laws

 

REST Report

 

Quiet Title Packages from Licensed Attorneys

 

Advertise on CFLA

 

Advertising Space: Mortgage Securitization, Quiet Title

 

Certified Forensic Loan Auditors, LLC
13101 West Washington Blvd.
Suite 444
Los Angeles, CA 90066

Toll Free: 888-758-CFLA (2352)
Mobile Users: CLICK TO CALL
info@certifiedforensicloanauditors.com

   
 
CFLA IS NOT A LAW FIRM AND DOES NOT PROVIDE ANY LEGAL ADVICE. CFLA DOES NOT OFFER FORECLOSURE CONSULTING OR FORECLOSURE RELIEF
SERVICES. CFLA DOES NOT OFFER OR ASSIST WITH ANY LOAN MODIFICATION SERVICE. CFLA ALWAYS RECOMMENDS THAT CLIENTS RETAIN COMPETENT COUNSEL IN THEIR RESPECTIVE JURISDICTION. CFLA HAS A FREE PROGRAM TO REFER CFLA CLIENTS TO LAW FIRMS IN NEARLY EVERY STATE AND CFLA
DOES NOT CHARGE OR OBTAIN REFERRALS FEES FOR THESE SERVICES. SERVICES NOT OFFERED TO RESIDENTS OF THE STATE OF NEVADA.

 
Home About Us Privacy Policy Terms of Service Disclaimer SERVICES Careers Contact Us
 
COPYRIGHT © 2007-2016 Certified Forensic Loan Auditors ™ All rights reserved