Glossary – Securitization Audit
A securitization audit is a legal document that reviews the process of home and commercial loan securitization and searches for fraud per the Securities Exchange Commission Regulations. The document is admissible in court as evidence and is used primarily in foreclosure defense cases where the homeowner feels they have been or will be wrongly foreclosed upon by the trustee of their mortgage loan.
More on the securitization audit
Currently, there is no government license or certification for securitization auditors. Viability of the mortgage and securitization audit in a court of law is wholly dependent upon the experience of the auditor. Many times, companies hold three day seminars for prospective auditors. They will then issue corporate certifications for their mortgage auditors. These certified securitization loan auditors or certified forensic loan auditors do not have the capability or experience necessary to create a document that will hold up in a foreclosure defense case. A securitization audit that will be viable in court must be performed by an individual that is deemed qualified by the judge. This can only occur with experience in the industry of securitization.