Hello there.-

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A forensic loan audit looks at the entire loan and the documentation put in place on that loan when it was first given to the borrower and this audit looks for compliance with ALL laws of the US and the state you reside in -- such as the lender's compliance with the Truth in Lending Act -- this type of loan audit is more geared towards consumer protection issues.

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The securitization loan audit is to determine if the documents used and methods used to put the loan into a securitization pool complies with state and federal laws. Securitization is when a loan is sold AFTER it is made to the borrower -- it is basically put into a large pool with other residential and commercial mortgages and then bonds are issued to various investors all over the world using that pool of mortgages as collateral to the investors. This type of audit is more geared towards the government checking whether the banks did everything legally and properly when entering into these pooled bond "securitized" transactions and although it may have some reflection on the actual borrower / consumer, this audit is more of a regulatory audit to see if there are any issues that the SEC may beinterested in and if everything was done legally according to institutional and Wall Street banking and investment laws.

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There is a possibility that some of the inquiries made in each of these audits may overlap but the ultimate purpose of each audit is typically different.

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Please let me know if you have any further questions.

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MARY

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