Forensic Loan Auditing

Some say that forensic loan auditing is a very hard task. But when you know some of the pertinent information on how to do this, it will just be very easy for you to do forensic loan auditing.

So when you are planning to do forensic loan auditing, there are some information that you have to be aware of first.

Forensic loan auditing is just very simple. Some people can just learn the ways to do this without further research. This will be very possible once you learn some of the information about forensic loan auditing.


The first thing you have to bear in mind is to identify some of the documentation and qualities that you need to include in all the files. This will be presented to the loan group who is in charge of the examination of the documents. Examples of the documents and qualities of mortgage loans are the following:

  • The mortgage loans should include appraisals
  • Debt documentation
  • Income
  • Credit Reports
  • Deeds
  • Loan notes with signature

Forensic Loan Checklist

Once you are done with the documentation, the next thing you need to do is to make a checklist of the forensic loan based from the documents that are required. When examining the loans you have, it involves comparison of the checklist items into the actual documents of your loans. Just in case there are individual files and documents, it must be highlighted for proper identification. Aside from that, you must also ensure that you examine the documents in relation to its authenticity and relevance. Bear in mind that documents can be doctored so the authenticity of these documents should be verified by the concerned third party.

Testing Reasonableness

Moreover, you must also have the documents tested in terms of reasonableness. You have to remember always that the authenticity of a document is nothing especially when it is not real. Once you are done with identifying the reasonableness of the documents, the next step you need to do is to evaluate if all the policies are followed. This must be done right away after you have completed the steps in determining the authenticity of the documents. Particularly, you can compare the approved loans with the possible mending policies in relation to the transaction time. A lot of concerned individuals are not able to do this. So make sure that when you are about to do forensic loan auditing, you will not overlook this step.

Completion of Forensic Loan Audit

The last thing you need to do is to compare the forensic loan audit by means of providing the option in terms of the document's veracity. Moreover, you must also ensure that you will adhere to the policies of the lending officer. Be alert if there are so many variations. Even the slightest variations should be noted so that you will inform the readers with the exceptions of the loan policies. Just in case you will be asked with the opinion of the quality of the individual loans as well as lending decisions, you can also include the information about this.


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