CFLA Announces "Mortgage Regulatory Compliance Reports" Targeted at Government Sector

Los Angeles, CA, February 23, 2012 --(PR.com)-- CFLA, Inc., through its Corporate President Andrew Lehman issued a statement that "CFLA Plans to offer its Mortgage Regulatory Compliance Services to the Government Sector" as it has long served the Legal Community since 2007, becoming the Nation’s Largest and Most Respected Mortgage Regulatory Compliance Firm in the United States.

Market Experts estimate that CFLA owns or controls through its subsidiaries, more than 60% of the Wholesale Market for "Mortgage Regulatory Compliance Audits" largely to date being focused in the Legal Industry.

CFLA has hosted Mortgage Securitization Training (3) day classes since 2009, setting the bar for education and training in this field. Through this Executive Level Training Program CFLA has Trained and Certified more than 1,000 Attorneys and Real Estate Professionals.

Additionally, CFLA hosts multiple State Bar Approved CLE Seminars on topics ranging from Mortgage Securitization, Quiet Title, Foreclosure Defense, Bankruptcy and Ch. 13 Re-Organization, and other cutting edge industry related subjects in each of the following approved jurisdictions, CA, NV, GA, FL, NY, PA, IL, and WI.

In a Recent Report discussed in a New York Times Article, wherein more than 400 subject loans in the State of California were evaluated, CFLA affiliate produced the following findings:

But among the legal violations uncovered in the analysis were cases where the loan servicer did not provide borrowers with a notice of default before beginning the eviction process; 8 percent of the audited foreclosures had that basic defect.

In a significant number of cases — 85 percent — documents recording the transfer of a defaulted property to a new trustee were not filed properly or on time, the report found. And in 45 percent of the foreclosures, properties were sold at auction to entities improperly claiming to be the beneficiary of the deeds of trust. In other words, the report said, "a ‘stranger’ to the deed of trust," gained ownership of the property; as a result, the sale may be invalid, it said.

In 6 percent of cases, the same deed of trust to a property was assigned to two or more different entities, raising questions about which of them actually had the right to foreclose. Many of the foreclosures that were scrutinized showed gaps in the chain of title, the report said, indicating that written transfers from the original owner to the entity currently claiming to own the deed of trust have disappeared.

Furthermore, the audit also raised serious questions about the accuracy of information recorded in the Mortgage Electronic Registry System, or MERS, which was set up in 1995 by Fannie Mae and Freddie Mac and major lenders. The report found that 58 percent of loans listed in the MERS database showed different owners than were reflected in other public documents like those filed with the county recorder’s office.

The report contradicted the contentions of many banks that foreclosure improprieties did little harm because the borrowers were behind on their mortgages and should have been evicted anyway. "We can deduce from the public evidence," the report noted, "that there are indeed legitimate victims in the mortgage crisis. Whether these homeowners are systematically being deprived of legal safeguards and due process rights is an important question."

The improprieties range from the basic — a failure to warn borrowers that they were in default on their loans as required by law — to the arcane. For example, transfers of many loans in the foreclosure files were made by entities that had no right to assign them and institutions took back properties in auctions even though they had not proved ownership.

Commissioned by Phil Ting, the San Francisco assessor-recorder, the report examined files of properties subject to foreclosure sales in the county from January 2009 to November 2011. About 84 percent of the files contained what appear to be clear violations of law, it said, and fully two-thirds had at least four violations or irregularities.

Kathleen Engel, a professor at Suffolk University Law School in Boston said: "If there were any lingering doubts about whether the problems with loan documents in foreclosures were isolated, this study puts the question to rest."

For more information, or to contact the editor at CFLA, please call 800-768-2709, or visit us on the web at www.certifiedforensicloanauditors.com.

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