LOAN REVIEW
Forensic Reviews (Fraud, Putback & Reverification)
When a loan portfolio is underperforming one of the primary questions interested parties have is whether the underlying loans actually met the criteria outlined in the relevant contractual agreements.  Since 2006 Clayton has been leveraging its expertise in underwriting to review loans with a perspective focused on independently re-verifying critical data points, reviewing the borrower’s overall credit profile, and evaluating the relevant contractual agreements to ensure each loan adheres to the representations and warranties made by the loan seller or owner requesting insurance coverage.

Forensic Review Process
The focus of the forensic review is to identify breaches in representations and warranties, including fraud and misrepresentation, misuse of loan programs, and other discrepancies.  The most complete review scope covers the following:

  • Credit Bureau Report
  • Loan Application
  • Loan Approval
  • Appraisal
  • Title Commitment
  • HUD-1
  • Closing Documents
  • Phone Re-Verification
  • Third-Party and Public Verification
  • Related Agreements or Policies
Additionally, Clayton is capable of independently re-verifying critical data points to ensure the validity of the loan level information through third-party resources or direct contact.
Reporting
When an issue is identified, Clayton provides a complete, comprehensive package for the loan which includes the items below:
  • A letter describing the issues identified
  • Specific cite reference to the representation and warranty breach
  • All applicable supporting documentation
Additionally, reporting can be customized to your specific needs.