National Loan Auditors (NLA), a forensic loan auditor for attorneys and financial institutions, has developed a new product designed for bankruptcy attorneys, judges and trustees who the company suggests will soon be operating under cramdown laws.
Industry analysts predict that the pending cramdown legislation, which has passed the House but stumbled in the Senate, will produce a surge in bankruptcy filings, as financially pressed borrowers seek bankruptcy protection in an effort to avoid foreclosure.
"Already crowded court dockets will become more crowded, and bankruptcy judges and trustees will face increasing pressure to manage a growing case load," says August Blass, founder and CEO of NLA. "US Court Audit will enable judges to quickly review pending cases, readily extract relevant information from our report and review a reliable, accurate mortgage settlement recommendation, so they can provide the expeditious, equitable relief consumers and lenders will be seeking."
US Court Audit incorporates features of NLA's forensic loan audit, identifying violations of state and federal laws and regulations; misrepresentations (of income, employment or identity) by the borrower; pertinent details about the loan and the property securing it; and potential problems with the origination process, as well as with the underwriting of the loan, the company says.
Designed with the pending bankruptcy changes in mind, the NLA solution provides the specific information the new law will require judges and trustees to consider (e.g., dates and results of previous modification requests made by borrowers).