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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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