FORENSIC LOAN REVIEW SOLUTIONS
     Industry Leading Patented and Automated Compliance Reviews
WHY A FORENSIC AUDIT?


•   Consumer credit regulatory compliance
    complexity- the industry has failed!

•   Identify v...
MARKET FOR LOAN WORKOUTS


•   Nearly 290,000 loan mods in
    2008 Q3 alone

•   2 Million loan mods estimated
    for 20...
MARKET FOR LOAN WORKOUTS
                                                              2,000,000


                       ...
MARKET FOR LOAN WORKOUTS
                                            Positive Position   Negative Position




•   8.3 Mil...
MARKET FOR LOAN WORKOUTS
                                            Positive Position     Negative Position




         ...
MARKET FOR LOAN WORKOUTS
                                                In Foreclosure   At Risk




•   Over 1 Million p...
MARKET FOR LOAN WORKOUTS
                                                In Foreclosure   At Risk


                      ...
GOOD BANKS MADE BAD LOANS
GOOD BANKS MADE BAD LOANS
  Compliant
  Significant Violators




             17%



  83%


Total Institutions
GOOD BANKS MADE BAD LOANS
  Compliant                  Non-Repeat Offenders
  Significant Violators       Repeat Offenders
...
GOOD BANKS MADE BAD LOANS
  Compliant                  Non-Repeat Offenders      Not Highly Rated
  Significant Violators  ...
SCOPE OF SUBPRIME CASES V. S&L CRISIS


      More subprime cases today than the total
      handled by the RTC during ent...
AEQUITAS COMPLIANCE FINDINGS



•   Public data is consistent with the findings
    of our borrowers’ attorneys and loan
  ...
AEQUITAS COMPLIANCE FINDINGS



•   Public data is consistent with the findings
    of our borrowers’ attorneys and loan
  ...
AEQUITAS IS THE INDUSTRY LEADER

•   25 Million compliance reviews for leading banks since 2002

•   Patented, automated p...
AEQUITAS IS THE INDUSTRY LEADER

•   25 Million compliance reviews for leading banks since 2002

•   Patented, automated p...
IDENTIFYING VIOLATIONS = LEVERAGE

•   Violations subject lenders, investors and servicers to civil
    and criminal fines,...
IDENTIFYING VIOLATIONS = LEVERAGE

•   Violations subject lenders, investors and servicers to civil
    and criminal fines,...
THE AEQUITAS EXPERT SYSTEM
THE AEQUITAS EXPERT SYSTEM
        1

You submit loan file
      to us…
THE AEQUITAS EXPERT SYSTEM
        1                    2

You submit loan file    We perform the
      to us…          for...
THE AEQUITAS EXPERT SYSTEM
        1                    2                      3

You submit loan file    We perform the   ...
THE EXPERT SYSTEM SOFTWARE


•   335 fed, state and local laws reviewed

•   Decisioning rules maintained by in-house cons...
SCOPE OF AUDIT
SCOPE OF AUDIT

•   Truth In Lending

•   HOEPA (Section 32)

•   Predatory lending

•   Usury

•   Prohibited fees

•   F...
SCOPE OF AUDIT
SCOPE OF AUDIT
•   Higher-rate, higher-risk, higher-priced, subprime, nonprime,
    and rate spread laws

•   Prepayment p...
SCOPE OF AUDIT
SCOPE OF AUDIT

•   Negative amortization prohibitions

•   Balloon payment prohibitions

•   Payment and other term limit...
FORENSIC REVIEW SUMMARY
FORENSIC REVIEW SUMMARY
FORENSIC REVIEW SUMMARY
FORENSIC AUDIT REPORT
FORENSIC AUDIT REPORT
FORENSIC AUDIT REPORT
COMPLIANCE ISSUES FULLY DETAILED
COMPLIANCE ISSUES FULLY DETAILED
COMPLIANCE ISSUES FULLY DETAILED
AEQUITAS POWER UNDER THE HOOD


•   AT&T 24/7/365 SAS70 Level II server hosting

•   Enterprise class rules-based engine w...
AEQUITAS POWER UNDER THE HOOD


•   AT&T 24/7/365 SAS70 Level II server hosting

•   Enterprise class rules-based engine w...
AEQUITAS MEMBER TOOLS

•   Member-only access for licensed Bar members

•   File stacking requirements, qualified written r...
THE AUDIT FILE MANAGER
THE AUDIT FILE MANAGER
BE AN EXPERT

•   Our state-of-the-art automated system and turnkey
    solutions enable You to be the expert

•   Member ...
Aequitas Compliance Solutions Keynote
Aequitas Compliance Solutions Keynote
Aequitas Compliance Solutions Keynote
Aequitas Compliance Solutions Keynote
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Aequitas Compliance Solutions Keynote

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Keynote presentation for Aequitas Compliance Solutions outlining the need for forensic loan audits and why Aequitas is the best solution for attorneys.

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  • Aequitas Compliance Solutions Keynote

    1. 1. FORENSIC LOAN REVIEW SOLUTIONS Industry Leading Patented and Automated Compliance Reviews
    2. 2. WHY A FORENSIC AUDIT? • Consumer credit regulatory compliance complexity- the industry has failed! • Identify violations-obtain legal citations • Enables you to diligently advise clients
    3. 3. MARKET FOR LOAN WORKOUTS • Nearly 290,000 loan mods in 2008 Q3 alone • 2 Million loan mods estimated for 2009 Q3 2008 2009 EST
    4. 4. MARKET FOR LOAN WORKOUTS 2,000,000 1,500,000 • Nearly 290,000 loan mods in 1,000,000 2008 Q3 alone 500,000 • 2 Million loan mods estimated for 2009 0 Q3 2008 2009 EST
    5. 5. MARKET FOR LOAN WORKOUTS Positive Position Negative Position • 8.3 Million of 41.5 Million total US mortgages in negative equity position
    6. 6. MARKET FOR LOAN WORKOUTS Positive Position Negative Position 20% • 8.3 Million of 41.5 Million total US mortgages in negative equity position 80%
    7. 7. MARKET FOR LOAN WORKOUTS In Foreclosure At Risk • Over 1 Million properties in foreclosure • 10 Million at risk due to negative equity
    8. 8. MARKET FOR LOAN WORKOUTS In Foreclosure At Risk 10,000,000 • Over 1 Million properties in foreclosure 7,500,000 • 10 Million at risk due to negative equity 5,000,000 2,500,000 0
    9. 9. GOOD BANKS MADE BAD LOANS
    10. 10. GOOD BANKS MADE BAD LOANS Compliant Significant Violators 17% 83% Total Institutions
    11. 11. GOOD BANKS MADE BAD LOANS Compliant Non-Repeat Offenders Significant Violators Repeat Offenders 17% 43% 57% 83% Total Institutions Compliance Violators
    12. 12. GOOD BANKS MADE BAD LOANS Compliant Non-Repeat Offenders Not Highly Rated Significant Violators Repeat Offenders Highly Rated 17% 15% 43% 57% 83% 85% Total Institutions Compliance Violators Repeat Offenders
    13. 13. SCOPE OF SUBPRIME CASES V. S&L CRISIS More subprime cases today than the total handled by the RTC during entire S&L crisis
    14. 14. AEQUITAS COMPLIANCE FINDINGS • Public data is consistent with the findings of our borrowers’ attorneys and loan modification firm clients
    15. 15. AEQUITAS COMPLIANCE FINDINGS • Public data is consistent with the findings of our borrowers’ attorneys and loan modification firm clients
    16. 16. AEQUITAS IS THE INDUSTRY LEADER • 25 Million compliance reviews for leading banks since 2002 • Patented, automated process is fast, reliable and complete • Reviews 335 fed, state and local mortgage consumer protection laws • Pass-Fail-Error with citations in 5 seconds
    17. 17. AEQUITAS IS THE INDUSTRY LEADER • 25 Million compliance reviews for leading banks since 2002 • Patented, automated process is fast, reliable and complete • Reviews 335 fed, state and local mortgage consumer protection laws • Pass-Fail-Error with citations in 5 seconds
    18. 18. IDENTIFYING VIOLATIONS = LEVERAGE • Violations subject lenders, investors and servicers to civil and criminal fines, penalties and damages • Borrowers remedies can include, rescission, defense to foreclosure, refund if interest and fees paid, civil damages • TILA, RESPA and other fed and state laws provide for recovery of attorney fees
    19. 19. IDENTIFYING VIOLATIONS = LEVERAGE • Violations subject lenders, investors and servicers to civil and criminal fines, penalties and damages • Borrowers remedies can include, rescission, defense to foreclosure, refund if interest and fees paid, civil damages • TILA, RESPA and other fed and state laws provide for recovery of attorney fees
    20. 20. THE AEQUITAS EXPERT SYSTEM
    21. 21. THE AEQUITAS EXPERT SYSTEM 1 You submit loan file to us…
    22. 22. THE AEQUITAS EXPERT SYSTEM 1 2 You submit loan file We perform the to us… forensic review…
    23. 23. THE AEQUITAS EXPERT SYSTEM 1 2 3 You submit loan file We perform the We produce a detailed to us… forensic review… compliance review report
    24. 24. THE EXPERT SYSTEM SOFTWARE • 335 fed, state and local laws reviewed • Decisioning rules maintained by in-house consumer attorneys and nationally recognized outside counsel • Web-based solution with private label capabilities
    25. 25. SCOPE OF AUDIT
    26. 26. SCOPE OF AUDIT • Truth In Lending • HOEPA (Section 32) • Predatory lending • Usury • Prohibited fees • Fee limits and other restrictions
    27. 27. SCOPE OF AUDIT
    28. 28. SCOPE OF AUDIT • Higher-rate, higher-risk, higher-priced, subprime, nonprime, and rate spread laws • Prepayment penalty enforceability • Late fees and grace periods • Interest calculation and accrual requirements • Debt-to-income requirements • Loan-to-value requirements
    29. 29. SCOPE OF AUDIT
    30. 30. SCOPE OF AUDIT • Negative amortization prohibitions • Balloon payment prohibitions • Payment and other term limitations • Escrow and impound restrictions • Critical aspects of the eligibility requirements of the Home Affordable Modification Program
    31. 31. FORENSIC REVIEW SUMMARY
    32. 32. FORENSIC REVIEW SUMMARY
    33. 33. FORENSIC REVIEW SUMMARY
    34. 34. FORENSIC AUDIT REPORT
    35. 35. FORENSIC AUDIT REPORT
    36. 36. FORENSIC AUDIT REPORT
    37. 37. COMPLIANCE ISSUES FULLY DETAILED
    38. 38. COMPLIANCE ISSUES FULLY DETAILED
    39. 39. COMPLIANCE ISSUES FULLY DETAILED
    40. 40. AEQUITAS POWER UNDER THE HOOD • AT&T 24/7/365 SAS70 Level II server hosting • Enterprise class rules-based engine written in Java running on Oracle systems • Built-in security, data protection and reliability required by leading financial institutions
    41. 41. AEQUITAS POWER UNDER THE HOOD • AT&T 24/7/365 SAS70 Level II server hosting • Enterprise class rules-based engine written in Java running on Oracle systems • Built-in security, data protection and reliability required by leading financial institutions
    42. 42. AEQUITAS MEMBER TOOLS • Member-only access for licensed Bar members • File stacking requirements, qualified written response, and hardship letter templates • Client marketing templates via third party CRM host • Turnkey file processing and help desk
    43. 43. THE AUDIT FILE MANAGER
    44. 44. THE AUDIT FILE MANAGER
    45. 45. BE AN EXPERT • Our state-of-the-art automated system and turnkey solutions enable You to be the expert • Member tools and resources let you focus on your clients instead of consumer legal compliance research • Offer the most complete and cost effective solutions to your clients
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