Litigation involving mortgages is usually very complex. In today’s financial environment, cases are not limited to the mortgagor and mortgagee. The process of securitization and layers of different financial intermediaries and contributors makes many cases difficult to progress through. Finding an appropriate mortgage expert witness is critical when analyzing the different elements that may be involved in a case. Here are four examples of a mortgage expert witness that may be required in lawsuits involving mortgages.
Banking Expert Witness
When dealing with mortgage litigation, a banking expert witness can be useful in litigating your case. These expert witnesses typically have knowledge of loan origination and underwriting. They are also usually educated in other bank procedures, such as business loans, checking, savings, and credit line procedures. Additionally, they are familiar with government regulations and the laws that govern banking. Having an expert such as this, with hands-on experience, is helpful with the daily responsibilities of individuals in bank settings. Specifically, they may have worked with sub-prime mortgages, commercial hard money, mortgage fraud, or private lending. This knowledge will be useful because they will have first-hand experience working with mortgage origination. They can provide insight on cases that involve issues about application of payments, the processing of mortgage loans, denial, or granting of loan modifications.
Mortgage Broker Expert Witness
Mortgage brokers work to find a bank or a direct lender that an individual is looking for with a specific loan the individual seeks. While they bring mortgage borrowers and mortgage lenders together, they do not use their own funds to originate mortgages. They simply gather the paperwork from a borrower and transfer it along to a mortgage lender for the underwriting and approval. This type of expert witness is useful because they will be able to provide insight on the lending procedures. This includes the standards that occur between the borrowers and lenders.
Independent Mortgage Broker/ Lender Expert Witness
An independent mortgage broker/lender often works in multiple capacities. They work for companies that broker loans to institutional and private moneylenders, or they serve as funding lenders by loaning out their own funds. Additionally, they may work as loan servicers and collect payments from the borrowers on behalf of the lenders. The drawback to this type of expert witness is that it might be necessary to determine their understanding of the applicable laws and regulations that govern lending practices. They may not have had the exposure to compliance training and supervision available at larger financial institutions. Similar to a mortgage broker expert witnesses, this expert witness will discuss the procedures for creating a mortgage loan between borrower and seller.
Mortgage Compliance Expert Witness
The mortgage industry is heavily regulated and many lawsuits involve mortgage fraud and the like. Making sure mortgage loans are in compliance with regulations, loans are reviewed by this expert witness during various processing stages. This ensures there is loan level compliance. These experts are useful due to their familiarity with specific regulations within their industry for the creation of mortgages and fraud prevention. They can be used to opine on the required documentation, disclosure, and notices in loan transactions. As well as to their impact on the parties to the transaction. Furthermore, they will be useful for cases that involve forged documents, false reports, fraudulent entities, falsified income, credit and appraisal documentation, and other types of fraud related to lender-foreclosed property.